Best Landlord Insurance in Georgia
- Best Landlord Insurance in Georgia
Whether you’re temporarily renting out your second or vacation home or managing several units in a larger dwelling, rental property insurance is crucial for landlords.
In addition to the everyday inconveniences that can go wrong on your rental property, Georgia homes risk damage from hurricanes, tropical storms, and even tornadoes throughout the year.
Landlords need landlord insurance, also known as rental property insurance, to protect their property and liability sufficiently. In this guide, we’ve broken down the critical information you need to know to find the right landlord insurance in Georgia.
How Much Is Landlord Insurance in Georgia?
The average Georgia landlord insurance cost is about $1,494 for a $200,000 home, $2,599 for a $300,000 home, and $3,109 for a $400,000 home.
For reference, these rates are lower than nearby South Carolina and very similar to North Carolina.
The price of coverage will vary due to many factors, though, ranging from location to dwelling type to property features. Coverage on an apartment cluster or larger multi-family dwellings may be more. Landlord insurance tends to be more costly than homeowners insurance due to the increased risk of damage from tenants and the off-premises living of many property owners.
Most outlets will claim that landlord insurance is roughly 15% to 25% more than homeowners insurance on the same property. Using this number and the data we put together for homeowners insurance in Georgia, we determined average landlord insurance rates in Georgia for houses at different coverage levels.
Average Cost of Landlord Insurance in Georgia
Cost of House
Landlord Insurance Calculator in Georgia
Every section in a landlord insurance policy has limits. To determine exactly how much landlord insurance you need to get, let’s go through a sample landlord insurance calculator in Georgia.
You can get different types of landlord policies that include different combinations of these coverages. You can get a cheaper policy by eliminating some protection, but you’re then exposed to that area of coverage you’re now missing. To get the right policy, you must find a balance that agrees with your budget and needs. Note that we break down what these coverages mean in greater detail later.
Dwelling Coverage: How much dwelling coverage you need in your landlord policy is determined by your home’s value, namely its replacement cost.
Replacement cost is how much it would cost to rebuild your home based on materials and labor prices. To prevent people from underinsuring their properties, you typically need to insure your house to 80% of its replacement cost, but it’s better to be as close to 100% as you can so you’re not left lacking in a worst-case scenario.
In this example, let’s say your rental property is worth $300,000. You would need at least 80% of that, so at least $240,000 of dwelling coverage.
Other Structures: Some DP policies may allow you to turn it down, but if your rental property has other structures on it, such as sheds, fences, or a pool, you’ll want this coverage. Other structures limits are often a maximum of 10% of your dwelling coverage limit.
So, using our example, if you have $240,000 of dwelling coverage, you can have up to $24,000 in other structures coverage.
Personal Property: The amount of personal property coverage you need depends entirely on what items you keep at the rental property. You’ll need to know exactly what you’re keeping at the rental. Then, estimate how much these items are worth. In landlord policies, you usually don’t need more than a few thousand dollars worth of personal property coverage.
Liability: You’re often required to have a minimum of $100,000 to $300,000 worth of landlord liability insurance in Georgia, but insurers will always recommend more than the minimum. Medical expenses and legal fees can rack up very quickly, and you could be in trouble if you don’t have enough liability coverage. Raising liability limits usually has a minimal effect on premiums, so you may want to get between $500,000 to $1 million.
Price Factors of Rental Property Insurance in Georgia
Insurance companies analyze many variables to determine an appropriate premium for a property. When getting a quote, you’ll likely be asked:
- What type of dwelling do you rent out?
- How old is your dwelling?
- How old is your roof?
- What features are on your property?
The style of your property will greatly influence your premiums. Larger, multi-family dwellings will likely have higher premiums than single-family homes or duplexes. Bigger places with more tenants simply need more insurance coverage because more can go wrong.
Roof details are crucial, too. Carriers will want to know the age and condition of your roof. In southeastern states, homes with frail roofs are more prone to wind damage from hurricanes and tropical storms. So, landlords with properties that have old roofs may pay higher premiums.
Your status as either an on-premises or off-premises landlord can also influence premiums. You may receive lower rates if you’re living on or closer to your rental property since you can monitor the property in real-time more easily, ensuring its care and upkeep—companies like this.
Certain features of your rental property can raise your rates. Trampolines, pools, playground equipment, and wood stoves all increase your liability risk, thus raising your premiums. Alternatively, security systems, sprinklers, and deadbolt locks that make your home safer can lower landlord insurance rates.
Many more factors, such as claims history, deductible amounts, and location, affect your premiums. You may be eligible for several discounts based on your age, military status, certain home features, and more, so be sure to ask.
Types of Rental Property Insurance in Georgia
When calculating the amount of landlord insurance coverage you need in Georgia, you’ll have to choose from one of these types of policies. The less protection you opt for, the more money you’ll save, but the more exposed you’ll be.
DP-1 Insurance Policy in Georgia
A DP-1 policy is the cheapest and most basic landlord plan you can get. It covers the fewest potential sources of damage, known as perils. A DP-1 will typically only cover your property from fire and wind damage. Theft and water damage are excluded, as well as liability coverage in many cases.
DP-1 policies are always paid out on an actual cash value basis. This means your provider will deduct depreciation for all damage before reimbursing you, greatly lowering your payout.
DP-2 Insurance Policy in Georgia
A DP-2 policy covers you from more perils, including theft, falling objects (like trees), freezing damage, ice damage, and more. A DP-2 policy should also reimburse you on a replacement cost basis for property damage while sticking to an actual cash value basis for personal property.
DP-2s are a good middle-ground policy. They’re useful for many types of rental properties with more enhanced protection than a DP-1 while costing less than a DP-3.
DP-3 Insurance Policy in Georgia
DP-3 insurance in Georgia is the most comprehensive. Rather than naming what it covers, DP-3 policies only state things they don’t cover, such as mold, wear and tear, and earthquakes. A DP-3 is the option most similar to traditional homeowners insurance. It normally includes all the above coverages, and you can more easily add endorsements. It also can pay out both property damage and personal belongings claims at replacement cost.
As a result of its optimal protection, DP-3 plans are the most expensive option. They’re also usually only available on traditional homes, not multi-family dwellings like fourplexes, condos, and larger buildings.
Companies With Cheap Landlord Insurance in Georgia
Depending on your coverage needs, Farmers, Cincinnati Insurance, and Allstate offer some of the cheapest landlord insurance in Georgia. We analyzed some of the top carriers in Georgia to see who had cheap rental property insurance premiums.
Your rate will vary depending on the amount of coverage you need, as indicated below. Look how the cost of rental property insurance in Georgia from some of the largest providers in the state changes between homes at two different price points.
Georgia Landlord Insurance Rates by Company
Keep in mind that you may get a different quote than the above average if you’re shopping from one of these companies. Your individual premium will vary. Also, note that USAA is only available to active duty military or veterans and their family members.
What Does Landlord Insurance in Georgia Cover?
Landlord insurance policies are officially known as dwelling policy (DP) forms by insurance companies. When getting a DP form, providers offer certain coverage you can choose from.
Dwelling coverage safeguards the structure of your home and its permanently attached components. Your roof, walls, floors, decks, patios, HVAC, wiring, and more fall under dwelling coverage.
Other structures coverage applies to features on your rental property not attached to the main house. This can include driveways, fences, sheds, carports, and more. If you don’t have any other structures on your property, you don’t need this coverage in your landlord insurance.
Personal Belongings Coverage
Personal property coverage in landlord insurance covers any items you may keep on the rental property directly related to maintaining the property. These could be tools, cleaning supplies, or lawn equipment. Usually, a few thousand dollars of personal property coverage will do, but it may not be necessary if you don’t keep anything at the rental property. This coverage also never applies to tenant belongings.
Landlord Liability Coverage
Landlord liability insurance in Georgia kicks in if a tenant or visitor gets hurt on your rental property and decides to sue you for damages. Liability insurance can pay for medical expenses, legal fees, and more.
Loss of Income Coverage
Loss of rental income coverage applies if covered damage, such as a fire or hurricane, wrecks your rental property to the point that it’s uninhabitable and current tenants must move out. If this happens, your coverage will help cover the rent payments you’d be missing out on for a set amount of time until the house is repaired and tenants can move back in.
Basics About Landlord Liability Insurance in Georgia
Including landlord liability insurance in your rental property policy is crucial for getting the best coverage. You can’t control who comes to your rental property, especially if you live off-premises. Liability coverage protects your finances in a variety of ways.
Accidents happen. A tenant or guest of a tenant can get hurt on your property, and you can be found legally liable even if you weren’t present. For example, someone visiting your tenant could trip on a crack in the driveway, and you could be held responsible for not fixing the crack earlier. A seemingly innocent slip, stumble, fall, or dog bite could cost you much more money than expected.
Landlord liability insurance in Georgia can pay for the injured party’s medical expenses up to your policy limits if you’re found liable. It can also pay for your legal fees during the associated lawsuit.
Georgia Landlord Insurance Requirements
Georgia law doesn’t require any landlords to have insurance, but landlords who have mortgages will need a policy to satisfy their mortgage requirements. Lenders require insurance to protect their investments.
Most people buy properties with the help of a mortgage. A mortgage lender won’t give a home loan unless the property owner has insurance. That way, if the house suffers grave damage, the lender can turn to the insurance company to recoup the value of the home loan.
Whether you’re a homeowner living on-premises in a property with tenants, a homeowner renting out a second or vacation home, or a multi-dwelling unit owner living in one apartment while renting out the rest, you’ll need insurance coverage on the property as long as you used a mortgage to get it. Since you won’t fully be covered with a homeowners insurance policy, you must get landlord insurance for the life of the loan.
Investment property insurance in Georgia would also be a type of DP policy. Note that any buildings owned through companies will need a commercial landlord insurance policy, though, which is a different type of insurance coverage than residential landlord insurance.
How to Get the Best Landlord Insurance in Georgia
Choosing the best landlord insurance in Georgia isn’t always as simple as picking the policy with the most coverage. You need to compare policies to find one that best suits your needs and budget. With so many providers offering different policies and coverage options, it’s crucial to research and compare prices and features to ensure you’re getting the best deal.
There are nearly 200 companies currently writing homeowners insurance in Georgia. Most, but not all, will also write residential landlord insurance policies. You can start your search for the best policy with some of the biggest names, such as Allstate and State Farm. But, you should also check quotes from smaller, regional insurers to see if there are any differences.
Price is the biggest factor for most people when comparing policies. When choosing a provider, you should also keep possible deductible amounts, customer service, and reputation in mind.
How to Get a Landlord Insurance Quote in Georgia
You must get multiple Georgia landlord insurance quotes when looking for coverage to know you’re getting the best deal. Our online quoting engine can get you policies from the best rental property insurance companies in Georgia.
Use our proprietary online quoting tool to compare landlord insurance in your area from the comfort of your home. If you have any questions, feel free to call us at 833-255-4117 during business hours to speak with one of our licensed agents. You can also email us at firstname.lastname@example.org with questions, comments, or concerns.
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.