Best Landlord Insurance in Pennsylvania

Being a landlord can be stressful, whether you have one tenant or several. The added pressure of something outside your control damaging your rental property at any moment is enough to sometimes keep you up at night.

Most homeowners get homeowners insurance, but homeowners insurance won’t sufficiently cover a rental property. You need a landlord insurance policy for full protection and peace of mind.

Below, we broke down the essential information you need to know to get the best landlord insurance in Pennsylvania, from average rates to the cheapest companies and everything in between.

The average Pennsylvania landlord insurance cost is about $1,153 for a $200,000 home, $1,582 for a $300,000 home and $1,975 for a $400,000 home.

For comparison, these average Pennsylvania landlord rates are lower than nearby New York, but higher than rates in New Jersey.

Generally, landlord insurance premiums are between 15% to 25% higher than homeowners insurance premiums in Pennsylvania for the same house. Using this information, we determined the average cost of landlord insurance in Pennsylvania for houses at a few common valuations.

Landlord insurance rates vary throughout Pennsylvania based on many factors we’ll go over later, so these premiums may not be exactly what you receive when you get a quote. But, they’re useful to keep in mind when shopping, so you have an idea of what to expect.

Landlord insurance protects rental property owners in a variety of ways. Policies safeguard the property itself as well as owner liability. The possible coverages when getting a policy are:

Depending on the type of rental property insurance you get, your policy won’t contain all of these coverages. You can eliminate some to save money on premiums. The possible types of landlord insurance plans are known as DP-1, DP-2, and DP-3 policies.

A DP-1 policy is the most basic type of landlord insurance. It includes coverage from nine potential sources of damage called perils, the most common of which are fire and wind damage. It often excludes liability coverage and covers losses at actual cash value.

A DP-2 insurance plan is an upgrade over the DP-1 in a few ways. It covers up to 18 perils, including theft, vandalism, and water damage. It also covers property losses at replacement cost. DP-1s and DP-2s might not include liability coverage by default.

DP-3 insurance in Pennsylvania can cover both property loss and personal belongings at replacement cost. It also covers the greatest number of perils because it’s an open-peril policy, meaning all losses are covered unless specifically excluded. Floods, earthquakes, and mold are common exclusions.

A DP-3 policy is usually only available on traditional homes, not larger, multi-unit dwellings. Also, homes that are unoccupied for 30 or 60 days may not be eligible for a DP-3. 

To get the best landlord insurance in Pennsylvania, you should start by fully identifying your coverage needs. Once you know what needs to be covered and how much you should get, you should get quotes from several providers to find the best deal.

Finding the best landlord insurance in Pennsylvania may take some time, but it should pay off. With the right policy, you can save thousands of dollars over time and maintain peace of mind knowing that the right company has your back in case you need it.

Before shopping around, ask friends or family for company suggestions and read provider reviews online. Although you can often get quotes online, it doesn’t hurt to get in touch with a company at some point to gauge customer service. You can also get the help of an independent insurance agent who knows the ins and outs of insurance.

When deciding on the right policy, ensure you’re not sacrificing coverage for price. Don’t settle on a DP-1 policy that leaves you too exposed. Compare deductibles and be sure to ask about potential discounts you can receive.

Allstate and Erie offer cheap landlord insurance in Pennsylvania, based on our examination of rates from some of the top carriers in the state. You may experience even lower rates if you have a smaller property to insure.

Take a look at average landlord insurance rates from some of the top providers in Pennsylvania.

On average, all options came in under $1,600 per year besides Travelers. Remember, though, that Travelers may not be the most expensive for you. Premiums will vary based on many factors.

Renting is very common in Philadelphia, accounting for about 50% of all households in the city. With such an emphasis on rental properties, it’s crucial that you protect yours. Landlord insurance in Philadelphia is essential for any landlord.

Renting in Philadelphia is convenient if you live and work in the city since Philadelphia is large, relatively walkable, and has good public transit options. 

How much you’ll pay will vary based on factors we’ll break down below, but you should be able to find the right policy for you at an affordable rate. Pricier parts of the city, such as Midtown and areas of northern Philadelphia around Ogontz, may have higher landlord insurance premiums since home values are higher there.

It’s hard to say whether getting landlord insurance in Philadelphia is cheaper or more expensive than in the suburbs. Crime rates, distance from fire hydrants, and property value all play a part. But, on the individual level, policyholders may be eligible for several discounts that can lower premiums, making a final answer difficult.

Landlord insurance in Philadelphia is available from several well-known providers. You should always compare plans from multiple carriers before deciding on one.

Insurance companies examine many variables when underwriting policies to make sure granting the policy is a wise financial decision on their part. Some of the most significant considerations when insurers decide your premium are:

Bigger, more expensive rentals will require a greater amount of insurance. Generally, the more coverage you need, the more you’ll pay. For example, a fourplex or an apartment building with several units will likely have more square footage, more tenants, and more to cover overall than a single-family home or a duplex. 

The age of your property is also a factor because older homes or buildings are more prone to claims. Old roofs, increased levels of wear and tear, and dated construction methods all make older buildings innately riskier, thus, more costly to insure.

Having certain features on your property will raise premiums. For example, pools, skate ramps, trampolines, and playground equipment are called “attractive nuisances.” They boost your liability risk and premiums. Also, having a wood stove or furnace as a heat source may raise premiums since they have increased chances of starting fires.

Alternatively, some security features can lower your premiums. Insurance companies often grant discounts to properties with a security system, sprinklers, and deadbolt locks. You may also receive a discount if you’re within 1,000 feet of a fire hydrant.

No law requires landlord insurance in Pennsylvania, but mortgage lenders require their loanees to have insurance coverage before giving them a loan. Insurance protects the lender’s investment in your property.

Most homeowners have mortgages. Since a lender is putting down most of the money for your home, they want to protect their (and your) investment with insurance. If the property sustains serious damage, the lender can then recoup money from their insurance company.

Landlords who rent out second or vacation homes won’t be covered by traditional homeowners insurance since homeowners insurance policies won’t cover houses you don’t live in. These landlords need a type of landlord insurance.

You’ll also need landlord insurance if you rent out part of a property you reside in, like the other side of a duplex or other units in a small building you own.

Any business ownership of properties, such as LLCs or trusts, typically needs a commercial insurance policy different from the residential landlord dwelling policies we’ve discussed here.

There’s a lot to remember when getting Pennsylvania landlord insurance quotes. At Clovered, we want to do all we can to help you find the right plan. With our online quoting tool, you can compare landlord insurance plans in Pennsylvania to find the best price

If you have any questions or just want that human connection when getting a policy, one of our licensed agents would be happy to help you bind. You can give us a call at 833-255-4117 during business hours, or shoot us an email at [email protected].