Landlord Insurance

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Maryland Landlord Insurance

Maryland landlord insurance provides a level of protection that no landlord should live without. By having the proper coverage you will no longer need to worry about an insurance company covering you in the event your rental unit is damaged by a covered loss. Many rental home owners go years before they switch the homeowner's insurance policy to a landlord policy. This is usually because they think the coverage is the same or the landlord insurance policy is much more expensive.

Landlord Insurance Quotes in MD

The best way to find the cheapest policy with the best coverage is comparing the top providers. Maryland insurance companies offer great protection for landlords but finding the right policy is what we help you with. Use our free online tool to compare rates from the companies you trust.

Landlord Liability Insurance

By renting out your home it will increase your risk from a liability stand point. You are now responsible for someone else's safety while they live in your rental home. If you fail to maintain the property and your tenant is injured you are liable for their injuries and property damage. Landlord liability insurance covers your liability in this scenario but make sure you do everything to minimize the potential for safety hazard.

5 ways to make your rental property safer and reduce your liability risk

  • Install multiple carbon monoxide detectors and check battery levels every 2 months
  • Have proper locking windows and doors throughout the house
  • Have fire extinguishers handy in fire prone areas like kitchens and garages
  • Fix any faulty maintenance issues quickly before they become safety hazards (i.e. uneven stairs, slippery walkways, and overgrown trees)
  • Confirm all new additions or changes to the property meet building code specs

Cost of Landlord Insurance in Maryland

The cost to insure your rental property in MD is dependent upon numerous rating factors that home insurance companies use to determine the proper premium. When you own a condo or townhouse the cost of landlord insurance is very minimal because usually you split that cost with the homeowners association which insurers the exterior of your unit. If you insure a single family home or rental complex then your insurance costs are going to be much higher due to the replacement cost of the building is solely your responsibility.

Here are a few of the most common rating factors that insurance companies use to determine your landlord insurance premium:

  • Credit rating - This is your personal credit rating which is similar to a FICO score but can be based on other specific criteria such as payment history and bankruptcy.
  • Location - The zip code or city that your rental unit is located in has a dramatic effect on your insurance premiums as companies who have big losses in those areas will increase rates to get profitable.
  • Building type - This can be numerous things including condo, single family, and townhouse including the materials used to construct the property.
  • Claim history - If you have one or more claims in the past 3 years as a homeowner most insurance companies will surcharge your premium. Some companies may not even accept your business if you have more than two.
  • Discounts - If you have more business with an insurance carrier they are more likely to offer discounts to keep all of your business with them.

How to Find Affordable Landlord Insurance

Each insurance company is different in the way they determine your rate and how much the average policy will cost but here are ways to ensure the lowest cost premium based on the factors above.

  • Good Credit - The better your credit the lower the cost of your insurance. Many states are now allowing credit as a rating criteria so get used to it being used. Try to keep your past payment history spotless and a FICO score above 720 is considered excellent.
  • Improve the Location - There is not much you can do about the location once you have purchased the rental property but be sure to keep the home well-kept and surrounding trees cut back to minimize potential hazards. The better your property appears the lower the cost to insure it will be.
  • Building type - Condo and townhouse owners will likely have a home owners association which will cover the exterior of the home so you are only responsible for the interior. This can save you hundreds of dollars each year. If the unit includes custom building and expensive materials expect to pay more because the cost to replace those items is greater.
  • No Claim history - Try not to make a claim if it is a small value of $2000 or less. Most companies look at multiple claims as a sign that you are prone to making claims in the future. If you are deciding whether to make a claim or not contact your insurance agent and ask them personally. Don't call the claim department and ask them because they are likely to document the call and file it for future use.
  • More Discounts - Ask about multiple policy discounts and the combination of auto and home insurance. Sometimes combining your personal auto insurance with this policy can save you 20-30% off each policy.

Maryland's 5 largest cities by population

City
Population
Baltimore 620,961
Columbia 99,615
Germantown 86,395
Silver Spring 71,452
Waldorf 67,752

*Data from 2010 Census Population by the Department of Economic and Community Development.

Common Landlord Insurance Claims in MD (Maryland)

Water
(Most claims cost over $4,100 to repair water damage)

Wind
(Most claims cost over $2,300 to repair damages from wind)

Fire
(Most claims cost over $44,000 to repair damage from fire)

Dog Bite Liability
(Most claims cost over $17,000 to recoup liability damages)

Loss of Rental Income
(Most claims cost over $2,700 to recoup lost rental income)

NOTICE: The amounts listed above are for illustrative purposes only and should not be used to decide what coverage limits you need for your landlord policy. Speak with your insurance agent to determine the proper coverage limits.

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