Best Landlord Insurance in Delaware
- Best Landlord Insurance in Delaware
Delaware is the second-smallest state in the nation yet the sixth-most densely populated. The demand for places to live means rental properties are highly sought after.
To help mitigate property damage that could disrupt your income stream and require costly repairs, landlords in Delaware should have landlord insurance.
The right landlord insurance policy will have your back financially in several vital ways. Unfortunately, insurance isn’t always straightforward. This guide breaks down what you need to know about landlord insurance in Delaware so you can buy the best policy.
How Much Is Landlord Insurance in Delaware?
Landlord insurance in Delaware costs about $810 per year on a $200,000 rental property, $874 on a $250,000 rental, and $1,501 on a $300,000 rental property. Landlord insurance rates are generally 15% to 25% higher than homeowners insurance rates on the same homes.
Average landlord insurance rates in Delaware are relatively low. We’ve examined premiums from several states around the country. Our findings show that the average landlord insurance in Delaware is lower than in nearby Pennsylvania and Maryland, but slightly higher than in New Jersey.
The table below shows the rates of average landlord insurance in Delaware for rental properties at a few common price points.
Average Cost of Landlord Insurance in Delaware
Cost of House
For reference, you may want to take a look at average homeowners insurance rates in Delaware to see the difference in covering policyholder homes and tenant-occupied homes.
What Does Landlord Insurance Cover in Delaware?
Landlord insurance, also known as rental property insurance, covers several types of properties. It shields landlords financially from property and liability damage. The coverage areas in a landlord policy are as follows:
Dwelling coverage covers the structure of your rental property and its permanently attached components. This includes your roof, walls, flooring, patios, wiring, water heater, and more.
Other structures coverage protects features on your property that aren’t attached to the main house, such as sheds, driveways, fences, detached garages, and more.
Personal Belongings Coverage
If you keep any items at your rental for maintenance, personal property coverage in a landlord insurance policy will protect the items from damage. This doesn’t cover your tenant’s belongings.
Landlord Liability Coverage
Landlord liability coverage covers medical bills and legal fees if a tenant or guest gets injured at your rental property and sues you for the damages.
Loss of Income Coverage
Loss of rental income coverage helps cover rent payments you’d miss out on if your tenants are forced to move out after covered property damage.
Landlord Insurance Policy Options in Delaware
There are many different types of residential landlords. Insurance policies must cover the various properties that landlords have, such as:
- Single-family homes
- Multi-family homes (duplexes, fourplexes, etc.)
- Apartment units and buildings
- Condo units and buildings
You can choose from one of three dwelling fire policies (DPs) for your rental property coverage.
DP-1 Insurance Policy in Delaware
DP-1 plans are the most basic rental property coverage you can get. DP-1 policies cover all property losses on an actual cash value basis. Actual cash value coverage means your provider will account for items’ depreciation when reimbursing you during a claim, lowering your settlement.
DP-1 policies also cover the fewest potential sources of damage and only include dwelling, other structures, and loss of income coverage by default.
DP-2 Insurance Policy in Delaware
DP-2s cover more possible damage scenarios, called perils, than DP-1s. DP-1s normally cover eight named perils, with the most significant being wind and fire damage. DP-2s cover up to 18 named perils, including theft, vandalism, and water damage. DP-2s still often exclude liability coverage.
DP-3 Insurance Policy in Delaware
DD-3 policies are the most comprehensive and, thus, the most expensive coverage you can get for a rental property in Delaware. They cover the most perils on a replacement cost basis, typically including liability and personal property coverage by default.
How to Get the Best Landlord Insurance in Delaware
You should understand your coverage needs and budget to identify which plan would be the best Delaware landlord insurance for you. Although DP-3s provide the most coverage, they’re not the best in every scenario.
Ideally, every landlord would get the most coverage they can. But, not every rental property owner can afford a DP-3. Also, depending on your property, some of its coverages might not be necessary. In some cases, you can responsibly eliminate some protection and save money.
For example, you don’t need other structures coverage if you rent out apartment or condo units. These dwellings likely won’t have any features beyond the main residence since they don’t have personal yards. You may also be able to cut out personal property coverage if you don’t keep any of your own items at your rental property.
Landlords living on-premises may feel they can keep a close eye on their rental property and tenants at all times, so they may feel more comfortable opting for less coverage. Contrast this with a landlord who lives in a different state, who may want as much reassurance as possible, including theft, vandalism, and liability protection since they can’t check up on their property as often.
Companies With the Cheapest Landlord Insurance in Delaware
Nationwide, State Farm, and Allstate offer some of the cheapest landlord insurance in Delaware. Rates will vary based on many factors, such as property value, so it’s hard to estimate average premiums in all cases.
We analyzed average rates from some of the top landlord insurance companies in Delaware and displayed our findings in the table below.
Average Landlord Insurance Cost in Delaware
A statewide average might not be a fair reflection of the premium you receive from one of these companies. Your location, property features, and more can raise or lower your premiums.
You can see how much rates vary, though. Coverage on a $250,000 house differed by up to $384 per year just from these four carriers. Over 100 home insurance companies are currently writing policies in Delaware, many of which will write rental property insurance also. You should shop around for the best odds of finding cheap landlord insurance in Delaware.
Cost Factors of Rental Property Insurance in Delaware
To shed some more light on what can affect the cost of rental property insurance in Delaware, here are some of the most important factors companies consider when determining premiums:
- Property age
- Property features
- Property location
- Coverage and deductible amount
- Claims history
Older rental properties often have higher premiums due to their wear and tear or outdated components. As parts of your home age over time, they gradually become weaker and more prone to damage from regular use and weathering, especially if improperly maintained. Old siding is more prone to water damage and wood rot. Older roofs are more prone to leaks and wind damage. Insurers charge older houses higher premiums as a result of their increased odds of property damage and generating a claim.
Features on your rental property can impact your rates. Exterior features like pools, trampolines, and playground equipment are known as attractive nuisances and increase your liability risk, raising your premiums. On the inside of your home, having more expensive fixtures or high-end appliances will raise your replacement cost, meaning you need more dwelling coverage, which will cost more.
The location of your rental property matters, also. Being in a flood zone or high-crime area can make your house a greater risk and raise premiums. Also, coastal homes often have higher rates due to possible hurricane damage.
Insurance companies will ask about your claims history when quoting you. You may pay more for coverage if you’ve recently filed several claims. Carriers believe someone who has filed claims in the past is more likely to file again than someone who never has. Additionally, if a provider sees your rental property has spawned a lot of claims in the past, they may charge higher premiums.
Is Landlord Insurance Required in Delaware?
Although no laws require landlord insurance in Delaware, many rental property owners have it to satisfy mortgage conditions. Lenders stipulate insurance coverage as part of their home loans to protect their investments.
If you have a mortgage on your rental property, you need insurance for the life of the loan. Since homeowners insurance policies won’t cover properties with tenants, you’d need a type of landlord insurance policy.
Lenders will force-place coverage on you if you drop your policy during your mortgage. Even if you pay off our mortgage or never had one in the first place, we don’t recommend not maintaining insurance on your rental.
There are many types of landlord insurance; even the most basic DP-1 could save you from paying tens of thousands out of pocket in one claim. Bypassing insurance leaves you fully responsible for paying for property damage.
How to Get Landlord Insurance Quotes in Delaware
You can get landlord insurance quotes in Delaware online or over the phone. We make both of these options easy at Clovered. We want to help you find your desired coverage at your desired price.
Our online quoting platform makes it easy to compare policies from some of the best landlord insurance companies in Delaware. All you need to do is input some basic information about yourself and your rental property, and you can get quotes in minutes.
You've worked hard to buy your rental property. Protect it with a custom policy at an affordable price.
The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.