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Oklahoma is a welcoming state for landlords and property investors, with favorable rules and affordable housing options. However, it is also located in the most tornado-prone part of the country and sees more than $720 million worth of property damage (on average) each year.
This is just one reason for Oklahoma landlords to take out an insurance policy for their rental properties.
Our guide to Oklahoma landlord insurance covers everything you need to know.
Rental Costs and Landlord Insurance Prices in the US
Currently, including listed rentals, the average monthly cost of rent in the US is a little over $1,900.
In comparison, the average landlord insurance policy costs $2,100 per year.
Both of these figures should be taken lightly, since actual rent and insurance costs are vastly different between states and from one property to another.
What Is Oklahoma Landlord Insurance?
In short, landlord insurance is a policy that protects rental property owners and investors from financial loss when unexpected or sudden damage occurs. It is similar to other home insurance products but with a few key differences (see below).
Landlord insurance is not required by law in Oklahoma, but given the substantial risks all property owners face, it is strongly advised that everyone have it.
Most mortgage companies require you to have a landlord policy as part of the loan agreement.
The Difference Between Landlord Insurance and Homeowners Insurance?
Homeowners insurance and landlord insurance offer many of the same types of coverage- primarily paying for repairs if your property is damaged by certain covered loss events.
Because landlords insurance is designed specifically for those who rent out their properties, it includes a few extras and usually costs a little bit more.
Put simply, you need landlord insurance if someone else lives on your Oklahoma property. You need landlord insurance if you live there yourself.
What Does Landlord Insurance Cover in Oklahoma?
Dwelling Coverage
The base of all landlord insurance policies is dwelling coverage- a.k.a. insurance to repair or rebuild part or all of your property. It covers damage to the structure in a range of situations.
How much coverage you have depends on the policy, and what counts as a covered event can also vary. Most policies require a separate add-on for flood coverage, and many offer enhanced natural disaster insurance for at-risk properties.
Liability Insurance
Landlords liability coverage covers legal expenses and medical bills if someone is injured on your property. Some policies offer additional coverage for liability losses that come from tenant disputes- such as evictions.
Additional Structures
If you have a garden fence, garage, or other additional structures on your rental property, they are also covered for damage expenses.
Personal Property
Any items in the rental property that belong to the policyholder are covered by landlord insurance. This includes furniture, decorative items, appliances, and more.
Loss of Rental Income Coverage
Some landlords' insurance policies offer additional protection for lost rental income if a property becomes uninhabitable due to a covered event.
Oklahoma has high habitability standards for rental properties, so it is worth looking for a policy with guaranteed rental income coverage.
What is Not Covered by Oklahoma Landlord Insurance?
Your Tenants' Belongings
Only property that belongs to the policyholder is covered. Your tenants should take out a renters insurance policy to cover their belongings.
Intentional Tenant Damage
Malicious or intentional damage caused by your tenants is not covered by landlord insurance policies. You need to pursue a lawsuit for damages instead.
General Maintenance
Wear and tear is normal, and rental property insurance will not pay to repair or replace old or worn appliances or equipment.
How Does Landlord Insurance Help Oklahoma Rental Property Owners?
Landlord insurance coverage helps in many situations.
One of the biggest risks for Oklahoma property owners is the severe weather that often hits. If your rental property is damaged by high winds or heavy storms, your insurance can pay to repair the damage.
It also helps in other unexpected situations- including house fires, theft, and vandalism.
If your coverages include liability insurance, it will also protect you from financial disaster if you are found liable for an injury sustained on your rental property.
What Does Landlord Insurance Cost in Oklahoma?
The cost of landlord insurance in Oklahoma varies significantly- even the average range is pretty wide. Normal policy prices range from around $760 to over $2,400. It is largely dependent on the value of the property and its proximity to the infamous tornado alley.
How Is an Oklahoma Landlord Insurance Quote Calculated?
Insurance for rental properties in Oklahoma is calculated based on:
- Property size and value
- Type of property
- Geographical risk
- Likelihood of a claim
- Client's claims history
- Coverage required
- Deductible and policy limits
- Property condition
It is important to remember that insurance quotes vary significantly.
How to Reduce the Cost of Landlord Insurance Coverage in Oklahoma
- See what discounts are offered by the insurance companies you are considering.
- Be well prepared for the property inspection.
- Consider storm mitigation efforts and upgrades on safety features.
- Increase your deductible
- Pay annually instead of monthly
Five of the Best Insurance Companies for Rental Property in Oklahoma
If you are looking for a landlord insurance policy in Oklahoma, these five companies are worth considering.
You can sometimes get a free landlord insurance quote online. Other companies only provide details and prices for their coverage options through a local insurance agent.
What Is DoorLoop?
DoorLoop is the go-to tool for landlords and property managers who want a more efficient, convenient, and organized way to handle their day-to-day.
It simplifies rental property management by bringing together the many elements of being a landlord and providing an intelligent and effective solution.
Landlords with one or two properties can benefit from this tool just as much as someone with a significant property portfolio- anyone who wants to be more in control and stay one step ahead in the rental business should consider this software.
Level Up Your Rental Property Business with DoorLoop's Great Features
Here are some ways DoorLoop helps landlords in Oklahoma get more from their rental property businesses.
- Streamlined maintenance management
- Online rent payment collection system
- Tenant portals
- Custom applications websites
- Accounting tools
- Marketing with Zillow and Trulia
- Lease management
- Tenant screening
- Portfolio management
Schedule your free demo today to learn more!
Summary
Oklahoma can be an excellent state for real estate investors and landlords, but only if they properly protect their investment property with high-quality insurance.
Without this financial protection, you expose yourself and your business to significant risks.
Remember to compare insurance companies and ensure natural disasters protection is part of your coverage.
Frequently Asked Quesitons
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