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What is landlord insurance?
Landlord insurance, also called rental property insurance, covers risks associated with renting your home, apartment, or condominium to tenants for long periods of time. Coverage typically includes loss of rental income for landlords along with property damage and liability costs. A landlord insurance policy is often recommended for homeowners who rent a property for any amount of time.
You may see landlord insurance also referred to as a DP3 (Dwelling Fire Policy).
Read more on this topic: https://www.obieinsurance.com/blog/what-does-landlord-insurance-cover
Why do I need landlord insurance?
Landlord insurance protects you and your property from damage, such as a fire or hail, similar to the homeowners insurance policy you’re familiar with.
However, landlord insurance is necessary when you don't live at your rental property. Your homeowners policy may not protect you from damages that occur at your property while it’s being rented out. In addition, your homeowners insurance will not cover your loss of rent in the event that your property becomes uninhabitable for short periods of time.
Read more on this topic: https://www.obieinsurance.com/blog/do-you-need-landlord-insurance
What does landlord insurance protect?
Landlord insurance is usually broken down into two parts—property coverage and liability coverage.
Property coverage protects the physical structure of the home. This would include your walls, roof, flooring, and other physical features of the property.
Liability coverage protects you against claims resulting from bodily injury or other accidents that may occur on the property, or other claims made against you as a homeowner.
A chart to help you understand the differences in coverage between homeowners and landlord insurance, is can be found here.
*Ask your insurance provider or review your policy documents to confirm your coverage and limits.
Read more on this topic: https://www.obieinsurance.com/blog/what-does-landlord-insurance-cover
What is the difference between a homeowners and a landlord insurance policy?
A homeowners insurance policy and a landlord insurance policy are similar in that they cover the physical structure of the building, but they differ in several important ways.
First, a homeowners policy covers the contents of the property while a landlord policy typically does not. Here, contents refer to personal belongings, clothes, and furniture that you most likely won’t be leaving at the property with your tenant and so you don’t need to pay for coverage. Although if you choose to keep some items on premise for your tenants to use, such as a lawnmower, a landlord policy can cover that.
A landlord policy also includes important coverages like loss of rent, which protects your rental income.
Read more on this topic: https://www.obieinsurance.com/blog/landlord-vs-homeowners-insurance
Is landlord insurance more expensive than a homeowners insurance policy?
Sometimes it can be, but it all depends on the property. Insurance carriers typically price these policies a little higher because you’re not living in the property and would potentially catch issues before they turn into larger problems.
Read more on this topic: https://www.obieinsurance.com/blog/is-landlord-insurance-more-expensive
Does the mortgage company require me to have insurance?
Yes. All mortgage companies or lenders will require that you have a landlord insurance policy on the property, even if you previously had a homeowners policy on the property.
Depending on the mortgage company, they will either require a quote or a fully bound insurance policy + all supporting evidence of insurance (as per their insurance requirements) prior to your loan entering underwriting. All mortgage companies will require evidence of insurance at the closing table, or the loan will not close.
Why should I buy Obie insurance?
Obie offers insurance tailored to landlords and real estate investors, instantly, with lower rates. Unlike most insurance companies, with Obie you can complete your insurance purchase in minutes. There are no week-long waits, or back and forth with brokers.
How long does it take to complete the process?
In under five minutes, you can answer a few questions about your property, get a binding quote, and complete the purchase of your insurance policy.
How often do I need to update my coverage?
You should review your policy every year before your renewal date and update accordingly. If you need assistance, the Obie team is here to help. Contact them at support@obieinsurance.com
What if I want to switch my policy, but I already renewed for the year?
The first step you’ll want to take is to reach out to your current insurance company. Let them know you’d like to cancel and ask if they have any specific steps you need to take to get a refund for your unused policy.
Once you cancel your old policy, your insurance company will typically send the refund of an unused premium directly to you. Since your lender pays for the premium up-front out of escrow, you’ll want to check with them regarding any outstanding balance on your escrow account. Since the lender pays for your new policy, they’ll want a refund to be reimbursed in your escrow account, otherwise you can expect a higher escrow payment next year.
At Obie, you are in the driver’s seat of the insurance buying process. Get full transparency into the cost of your policy with no back-and-forth between brokers. It’s easy to switch—contact the Obie team at sales@obierinsurance.com to learn more.
Who do I contact if I want to make updates, file a claim, or ask a question about my policy?
Please contact the Obie team at support@obieinsurance.com.
What is Obie?
Obie provides landlord insurance to real estate investors. Obie leads the industry with the fastest policy quote and binding technology, reducing need for tedious forms and extended wait times.
What makes Obie unique?
Obie is the only company capable of providing instantly bindable quotes for residential real estate investment properties, that are 1-4 units, along with being one of the most transparent insurance companies in the market.
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