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Ohio has a booming rental market and is considered a landlord-friendly state, making it an attractive prospect for real estate investors. That said, it also sees its fair share of severe weather events that lead to millions (sometimes billions) of dollars of property damage.
Landlord insurance cover exists to protect rental property owners from these losses. This comprehensive guide covers everything you need to know about insuring your rental property, why it matters, and what type of coverage you need.
The Average Cost of Rent and Landlord Insurance in the US
Rental costs have risen in many parts of the US, with the new average (including vacant listings) sitting around $1,970 per month.
The average annual cost of landlord insurance is roughly $2,100, or $175 per month.
What Is Ohio Landlord Insurance?
Ohio landlord insurance (also called rental property insurance or rental dwelling insurance) helps protect rental property owners from financial disaster after sudden or unexpected damage.
It provides a safety net in difficult times and is strongly recommended for all landlords- despite not being required by law in the state of Ohio.
Landlord Insurance VS Homeowners Insurance: What Is the Difference?
Homeowners insurance and landlord insurance are often confused with one another. If you are unsure which of these policies you need, there is a simple way to tell.
- Own and live on a property? You need homeowners insurance.
- Own a property but rent it to someone else? You need landlord insurance.
The coverage is similar in many ways, but landlord insurance offers extras that only apply to owners working in the rental industry.
What Does a Landlord Insurance Policy Cover in Ohio?
There are a few things that are always included in landlord insurance- although the limits and covered losses vary.
- Dwelling coverage pays to repair damage to the structure of your home.
- Additional structures are also covered.
- Landlord liability coverage pays medical bills and legal fees if someone is injured on your rental property.
- Personal property insurance covers damage to your belongings that you keep in the rental property, including furniture and appliances.
Something that is usually included (but not always in the standard plan) is rental income loss protection. You may also want to include legal liability protection to pay legal costs in tenant disputes.
What is Not Covered by Landlord Insurance?
You can add a lot of additional coverage in many areas, but the following are just not included in a landlord insurance policy.
- Damage to your tenants' belongings (they need to obtain renters insurance for that- you can include it as a requirement of the lease agreement)
- Damaged caused maliciously or intentionally by your tenants
- Repairs and maintenance on appliances that break down through wear and tear
How Can Rental Property Insurance Help Ohio Landlords?
Landlord insurance helps in all kinds of situations. Ohio rental property owners face the same risks as landlords across the country- and a few location-based threats to think about.
Here are a few examples of when landlord insurance comes in handy in Ohio.
- If your property is hit during Ohio's tornado season, the damage could be catastrophic. With an extended dwelling coverage policy, insurance can pay for the complete restoration of your property (excluding the deductible amount).
- Under Ohio premises liability law, landlords are often liable for injuries sustained on their properties. This can lead to expensive legal fees or even more expensive medical bills, but insurance helps to cover the cost.
- House fires can quickly destroy property and render a place uninhabitable. If you own the furniture and appliances in the rental, insurance will pay to replace them. It can also help restore or rebuild the structure and cover the lost rental income while the place is in bad shape.
What Is the Cost of Landlord Insurance in Ohio?
It is hard to put a figure on the overall cost of landlord insurance in Ohio. Prices vary significantly, but the overall state average is between $950 and $1,500 per year.
How Are the Costs of Landlord Insurance Policies Calculated?
Like a standard homeowner's policy, the price of landlord insurance is calculated based on property value and risk factors.
Many things influence this, including the size and condition of the property, where it is located, the climate in that area, and how likely it is that a claim will be made.
How Can Ohio Landlords Reduce the Cost of Their Rental Property Insurance?
You can save money on your landlord policy in a few ways.
Some companies offer discounts on insurance products for people who qualify- so it is worth comparing the deals from different providers to see where you can save the most.
Some other ways to reduce the cost of your monthly premium include:
- Increasing your deductible
- Making storm mitigation efforts on your property
- Preparing your property for the inspection (resolve issues in advance)
- Upgrading your safety and security systems
- Screening tenants with DoorLoop
The Best Landlord Insurance Companies in Ohio
Here are five insurance companies operating in Ohio that offer high-quality landlord insurance.
Most provide a free landlord insurance quote online, but you may need to contact an agent for a more accurate estimation.
What Can DoorLoop Do for Ohio Landlords?
Insurance coverage for your properties is one thing, but having a robust solution for managing your entire rental property business is another.
That is where DoorLoop comes in!
DoorLoop is the complete package for landlords everywhere who need an efficient, streamlined approach to managing their portfolios and daily business- no matter how large or small their operation is.
It provides a comprehensive platform to handle online rent payments, maintenance management, tenant screening, marketing, accounting, and much more.
If you want to learn more about what DoorLoop can do for you, schedule a free demo today to get started.
Final Thoughts
Ohio rental properties are not immune to disaster, and having landlord insurance helps protect your finances if the unexpected happens.
Make sure you compare quotes and find a policy that meets your needs- and don't forget to prioritize natural disasters protection if you live in a tornado-prone part of the state.
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