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Georgia is widely considered one of America's most landlord-friendly states, with favorable laws, lower-than-average property tax rates, and a stable housing market with a booming renter population.
All these things make it a more than viable choice for rental property investment. It is important to protect that investment from sudden or unexpected damage.
Although not one of the first states people think of for natural disasters, protection from severe weather events is vital for Georgia landlords. The state has out-ranked some of the more prominent states for tornadoes in recent years- and has more than 70,000 properties listed as high flood risk.
A landlord insurance policy is the best defense against financial losses if disaster strikes- not to mention the general risks that come with owning and renting out a property.
Here is everything you need to know!
The Average Cost of Rent and Landlord Insurance Nationwide
Before we start, let's look at average costs across the US for rent and landlord insurance.
Remember, these figures are averages and not clear representations of what you should expect to pay or receive.
- The average rental payment in the US is around $1,400 per month- but is closer to $2,000 if you include all listed properties.
- A landlord insurance policy costs an average of around $2,100 nationwide, but this figure varies significantly between states, insurance companies, and property types.
What Is Georgia Landlord Insurance?
Landlord insurance (also known as rental property insurance) in Georgia is a type of home insurance policy designed for rental properties. It protects owners and investors from significant financial loss if their property suffers significant damage, and it also protects them from other liabilities and risks.
What Is the Difference Between Landlord Insurance and Homeowners Insurance?
Homeowners insurance and landlord insurance are very similar in the things they cover- but landlord insurance includes some extras that only apply to those who have paying tenants living on their property instead of them.
Landlord insurance policies are usually slightly more expensive because of the additional coverage.
In most cases, a homeowners insurance policy does not cover rental property. You need to take out a landlord policy to properly protect your investment.
What Does Landlord Insurance Coverage Include?
Damage to Your Property's Structure
The most important part of a landlord protection insurance policy is dwelling coverage- which means cover for damage to the structure of your property.
Make sure you have enough coverage for the value of your property (minimum 80% of the value- but the closer to 100%, the better) and that the policy includes storm damage. You usually have to add flood insurance coverage as an extra.
Personal Property Damage
Landlord insurance covers damage to your personal belongings, such as furniture and appliances you provide for your tenants.
Landlord Liability Insurance
Liability coverage covers legal fees and medical bills if you are liable for an injury sustained on your rental property.
With some policies, liability protection covers legal costs during evictions and other tenant disputes.
Loss of Rental Income
One of the extras in most landlord insurance policies that is not covered by traditional homeowners insurance is rental income protection. This pays you the lost rental income you cannot collect if your property becomes uninhabitable due to a covered event.
What Is Not Covered by Landlord Insurance?
Damage Caused Intentionally
Intentional or malicious damage caused by your tenants is not covered. These disputes usually need a lawsuit to settle the expenses if the person is not willing to pay for repairs themselves.
Your Tenants' Belongings
Items belonging to your tenants are not covered by your landlord policy. They need renters insurance to cover that.
General Maintenance
Things break over time, and appliances that are poorly maintained can fail. Landlord doesn't pay to replace old items that are just run down through wear and tear.
How Does Landlord Insurance Help Georgia Rental Property Owners?
The most obvious example of when landlord insurance helps Georgia property owners is in the aftermath of severe weather events. Natural disasters cause millions- sometimes billions- of dollars of property damage, leaving people in significant financial trouble if they don't have insurance.
Landlord insurance in Georgia is not just for the extremes of Mother Nature- it also helps in times of bad luck.
Insurance helps if a house fire breaks out, your rental property is broken into, or somebody is injured, and you are liable for the damages- to name just a few.
What Is the Cost of Landlord Insurance in Georgia?
Based on data collected by Clovered, the average cost of landlord insurance by house value is as follows.
- Property value $200,000: $1,494 annual landlord insurance
- Property value $300,000: $2,599 annual landlord insurance
- Property value $400,000: $3,109 annual landlord insurance
Remember, these figures are only averages- they are not necessarily a good representation of what your insurance quotes will look like.
Many factors contribute to the actual cost of your premium, and prices vary significantly between properties.
How Are Landlord Insurance Policy Costs Calculated?
Rental property insurance costs are calculated primarily based on:
- Property value
- Level of coverage
- Risk factors
Once you decide on a policy and clarify what- if any- additional coverage you want, the insurance company calculates how much they need to charge you.
Your provider must establish how much it would cost them if your rental property had to be completely rebuilt and what the likelihood is of that happening.
Factors including your property's size, age, condition, and location are taken into account- as is your credit history and whether or not you have made any recent claims with a previous provider.
Is It Possible to Reduce the Cost of Rental Property Insurance in Georgia?
There are ways to reduce your monthly premium and earn a lower landlord insurance quote. Your options depend on the discounts and deals offered by your chosen insurance company, but a few things generally apply across the board for Georgia rental property owners.
Here are some things to consider.
- Wind mitigation efforts
- Upgraded storm-resistant roofing
- Pre-inspection preparation
- Higher deductibles
- Paying annually instead of monthly
- Bundle different policies
- Install safety and security systems (smoke detectors, alarms, anti-theft locks, etc.)
Five of the Best Landlord Insurance Companies in Georgia
Here are five companies offering landlord insurance in Georgia that are worth considering. You can usually get a free landlord insurance quote online, but you may have to contact a local agent.
Where Does DoorLoop Come Into the Equation?
Finding an efficient solution for managing your rental properties is as important as properly insuring them. That is why you need DoorLoop.
DoorLoop's innovative software provides a comprehensive platform for landlords and property managers to streamline their operations- no matter how big or small- and find a more convenient and effective way of doing things.
Some of the ways it does this include:
- Automating rent collection with an online payment and reminder system
- Screening tenants and letting you customize your application website
- Boosting your marketing with property ads on Zillow and Trulia
- Handling all maintenance requests through a convenient online platform
- Offering renter their own portal to track their rent, lease, maintenance proceedings, and more
- Providing excellent accounting tools and integrations
- Much, much more!
To learn more about DoorLoop, its features, and the difference it could make to your life, schedule a free DoorLoop demo today!
Summary
Landlord insurance cover is not a legal requirement in Georgia, but it is essential. Georgia is no stranger to extreme weather or expensive property damage, and it is not a risk worth taking with your investments.
Make sure you compare insurance quotes and research policy options before you commit. Prices vary significantly, and you might get more for your money elsewhere.
Cheap landlord insurance may be appealing at first glance, but don't cut corners on coverage if it means you won't get the financial support you need if the worst should happen.
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