The best landlord insurance in Murray can be found at the best agency – Anderson Insurance Group.
Landlord insurance is not only about the cheapest rate. In fact, when you focus only on price, you are most likely getting a cut-rate policy that will not include all of the coverage you need. At Anderson Insurance Group, we pay attention to the coverage inside your policy. Here are some important parts of your protection that not every company or agent will include:
DWELLING COVERAGE: This is the limit that determines the maximum amount the insurance company will pay to repair or rebuild the damaged portion of your rental property. Inflation, a shortage of skilled labor and more storms have driven up the cost of construction and consequently, landlord insurance has increased significantly over the last five years. When we review competitors’ insurance coverage, it’s common for us to find homes that are underinsured. Call us for a comparison.
EXTENDED REPLACEMENT COST: One way to protect against being underinsured is the extended dwelling replacement cost coverage. This endorsement will add an additional 125%, 150% or Guaranteed dwelling replacement (depending on carrier guidelines). For this extension to apply, it’s important that the square footage of your rental property is correctly stated on the application and policy. If not, the extended replacement can be voided. Some of the conditions for this endorsement to apply are stated below. If you have finished your basement or made other improvements, be sure to notify your agent. The moral of the Extended Replacement Cost story is, do not risk underinsuring your rental property. This is too common with online insurance companies who will offer lower coverage to earn your business but when there is a claim, you will not have the coverage you need. Navigating Online Insurtechs: Innovations, Risks, and Pitfalls | Anderson Insurance Group
CONTENTS COVERAGE: Contents Coverage on a Landlord Policy protects your personal property inside the rental unit. Since you don’t live in the property, most Murray landlords won’t have many personal belongings there. However, it is very common for landlords to provide certain appliances for their tenants.
Examples of landlord-owned contents often include:
- Dishwashers
- Ovens/Ranges
- Refrigerators
- Washer and dryer units
Because these items typically represent the majority of a landlord’s personal property inside the rental, a Contents Coverage limit of around $5,000–$15,000 is often sufficient for most rental properties.
Remember: Contents Coverage only applies when the damage is caused by a covered peril, such as fire, smoke damage, theft, or certain types of water damage.
However, if an appliance simply breaks down due to age, mechanical failure, or normal wear and tear, the landlord policy will not cover the cost to repair or replace it. Landlords are responsible for maintaining their appliances and replacing them when they reach the end of their useful life. There is no endorsement or additional coverage that will provide coverage for this type of damage.
LOSS OF USE (Fair Rental Value): This is one of the most important coverages on a landlord insurance policy. This coverage applies if your rental property becomes uninhabitable due to damage caused by a covered peril such as fire, smoke, severe storm damage, or certain types of water damage.
If this happens, Fair Rental Value will reimburse you for the rental income you lose while the property is being repaired. Even though your tenants can no longer live in the property, the policy can continue replacing the rent you would have collected.
Fair Rental Value payments typically continue until the property is repaired and habitable again. Repair timelines can be unpredictable and might change due to unforeseen circumstances. Because of this, it’s very important for Murray Landlords to carry adequate limits for this coverage. Loss of Use coverage is typically very inexpensive, smart landlords slightly overestimate the limit to ensure rental income is fully protected during the repair process.
PERSONAL LIABILITY: Covers if someone who does not live in the rental unit is injured on your property. Your policy will pay only if you are negligent and responsible for the third party’s injury. The most common claims are trip and falls & dog bite claims. It’s essential that you require your tenants to obtain their own Renter’s Insurance Policy. If the tenant’s mother-in-law drops by to visit, trips and falls, the renters’ insurance may respond before your landlord insurance policy. This benefits you by providing an additional layer of liability coverage. This is especially important if your tenant has a dog. The average dog bite claim across the nation is $50,000, make sure your tenants’ policy does not limit dog bite claims or exclude certain breeds. We recommend that you require your tenants to carry at least a $300,000 limit of liability coverage.
Dwelling, Contents, Loss of Use, and Personal Liability coverage seem to be the primary four coverage limits companies pitch when offering homeowners insurance.
The BEST LANDLORD INSURANCE – goes a lot further than that! Let’s dive deeper into what makes a Landlord Policy the best!
SERVICE LINE COVERAGE: Service Line is an optional endorsement you can add on to a Landlord Insurance Policy. It provides coverage for damage to underground utility lines that run from the home to the street. Damages covered by this endorsement include if the line leaks, cracks, freezes, or if a tree root causes damage to the line. These service/utility lines are typically buried 2-4 feet underground, and coverage extends to:
- Water Line
- Sewer Line
- Electrical Line
- Gas Line
If one of these lines suffers damage or fails, this coverage can help pay for the cost to repair or replace the damaged portion of the line. Without this crucial coverage, repairs to underground lines are excluded from a standard Landlord Policy.
Eligibility depends on factors such as prior claims history, update year, and overall property condition. Every carrier has different acceptability guidelines. Consult with a trusted advisor to confirm what coverage options are available to you. Guidelines are subject to change over time, and it’s important that you work with a knowledgeable agent who understands and keeps up to date with the latest updates. Call our office today (801-262-1551) and our Landlord Specialist, Andres, will personally review your coverage and respond with the best Landlord Insurance quote for your Murray Rental Property. Can Utah Rental Properties Get Service Line Coverage?
If you cannot get Service Line insurance on your Landlord Policy, you can always add it to your Dominion Energy bill. Dominion Energy | HomeServe
ORDINANCE & LAW: Pays to bring the undamaged portion of your rental unit up to code in the event of a loss. An example is if you have an electrical fire in one part of your property, the insurance company will pay to replace the electrical system that is damaged in the fire but not the part of the electrical system in the undamaged part of your property. The part of your property that the building permit will most likely require you bring up to code. Ordinance & Law pays for this. Some agents leave this coverage out to save a few bucks, make sure you have it included.
WATER & SEWER BACKUP: The limits of this coverage are not as important as they may appear because most water & sewer backup losses occur “on premises” so the limit does not apply. Nevertheless, a basic limit of coverage should always be included. Water & Sewer Backup Coverage, Do You Need It? | Anderson Insurance Group
THE BEST LANDLORD INSURANCE
The best landlord insurance isn’t always the best price or the limits on your dwelling or liability. Make sure you are protected by drilling into the coverage and choosing an agency you can trust, Anderson Insurance Group.
Here are a few more links with additional information to help you get the best landlord insurance coverage:
Does Landlord Insurance Cover Tenant Damages?
Why Every Utah Landlord Should Join the RHA
Are You Requiring Renters Insurance?
Anderson Insurance Group – Murray – Utah