North Dakota landlord insurance provides the proper protection against the surprises that landlords wish never happened. If you have the right insurance policy for your rental property in ND you will have less stress about what might happen. In Fargo or Bismarck there is a dramatic shift in weather between summer and winter which can bring their respective storms. Damage from these storms can include frozen water pipes and ice dams which is normally protected by a landlord policy.
Cost of Landlord Insurance in ND
The cost to insure your rental property in ND 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.
Does Landlord Insurance Cover The Renter's Property?
Both the landlord and renter should have their own insurance policies for very specific reasons.
- Landlord insurance will provide coverage to the landlord including the building property, owner contents, loss of rents and landlord liability insurance.
- Renters insurance covers a tenants personal property and liability.
For these two reasons each of you need your own policy because the contents of the renter are not covered by the landlord policy and vice versa. Many rental property owners will require that tenants get renters insurance. By doing this it will add another layer of protection in the event the tenant causes damage to the building or if something is stolen from the unit the renters policy will payout.
North Dakota's 5 largest cities by population
City - Population
Fargo 105,549
Bismarck 61,272
Grand Forks 52,838
Minot 40,888
West Fargo 25,830
*Data from 2010 Census Population by the Department of Economic and Community Development.
Common Landlord Insurance Claims in ND (North Dakota)
Wind
(Most claims cost over $2,900 to repair wind damage)
Fire
(Most claims cost over $26,000 to repair damages from fire)
Hail
(Most claims cost over $3,900 to repair damage from hail)
Liability
(Most claims cost over $4,100 to recoup liability damages)
Medical Payments
(Most claims cost over $4,700 to recoup medical damages)
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.
