Pennsylvania Landlord Insurance

Are you thinking about buying a rental property in Pennsylvania? Investing in real estate in the Keystone State can be an incredibly profitable venture.

However, there are many risks associated with owning and managing a property in this state, from missed payments and tenant-caused damages to natural disasters and structural issues. 

That’s why so many investors get landlord insurance!

Acquiring landlord insurance is not legally required in the state of Pennsylvania. However, it’s highly recommended.

A good insurance policy with comprehensive coverage can go a long way in keeping your investment protected and profitable.

In this article, the experts at DeSantis Property Management will go over everything Pennsylvania investors should know about landlords’ insurance. Keep reading to learn why you should get this type of insurance and how to lower your premiums!

What Is Landlord Insurance?

Landlord insurance is similar to any other homeowner’s insurance. However, it’s tailored to protect investors from the unique risks associated with renting out a property

For instance, landlord insurance offers protection against damages caused by tenants, unexpected repairs, and third-party liabilities.

Some policies even provide financial protection by covering the loss of income or unexpected expenses such as repairs and legal fees. 

What Does Landlord Insurance Cover in Pennsylvania?

Landlord insurance coverage varies greatly depending on the company and policy picked. However, almost all policies in Pennsylvania cover the following risks:

Property Coverage

Most landlord insurance policies will cover the rental property in case of unforeseen events. 

This can include fire damage, roof damage, third-party vandalism, structural issues, natural disasters, and damage caused by extreme weather conditions. 

A contractor repairing a roof.

Typically, dwelling coverage tends to extend to detached or secondary structures on the property, such as detached garages, sheds, and fences, so you can rest assured that all of your investment will be protected.

Some coverages offer protection for the landlord’s personal property, such as furniture, appliances, or landscaping equipment. 

However, landlord insurance doesn’t offer protection for tenants’ belongings or shared property, such as halls, stairs, and elevators in apartment buildings, as those areas are not exclusively used for rental purposes.

Liability Coverage

Renting out your Pennsylvania home makes you vulnerable to liabilities. 

For instance, if you fail to keep your property in good and safe condition and a tenant, guest, or even a contractor gets injured, you could be sued for negligence. 

Landlords in the state of Pennsylvania can be held accountable for criminal activities on the property.

Luckily, most landlord insurance policies offer liability coverage

This will protect you from any claims made by a tenant, a guest, or an uninsured handyman or contractor.

If you’re ever sued for a covered event, your insurance will help pay for your defense costs and other legal fees.

Loss of Rental Income

One of the biggest risks of renting out a property is tenants failing or refusing to pay rent. 

A landlord holding cash.

If you depend on your rental income to cover mortgage payments and operations expenses, one missed payment can significantly affect your finances. 

Fortunately, many landlord insurance policies in Pennsylvania offer protection against the loss of rental income.

If your property ever becomes uninhabitable due to unexpected damages included in the covered risks, your insurance will pay you out to cover the loss of rental income while repairs are underway. 

However, loss of rental income coverage isn’t always included in landlord insurance policies. You’ll have to double-check with your insurance to ensure you get this coverage.

Additional Coverage for Landlord Insurance in Pennsylvania

Some landlord insurance policies may not offer the protection your Pennsylvania rental needs. 

You can make up for it by purchasing optional endorsements on top of your standard insurance. Examples of additional coverage include the following:

How Much Does Landlord Insurance Cost in Pennsylvania?

No matter the size of your portfolio, getting landlord insurance is a must.

The prices of landlord insurance premiums in Pennsylvania can vary significantly depending on the company you choose, the condition and location of your property, the annual deductible, and the coverage. 

For instance, a DP-1 is the cheaper policy in the market, which only offers basic coverage.

On the other hand, DP-3 policies provide more comprehensive coverage, but at a much higher price point.

To determine what type of insurance policy you should get, you must assess: your property’s unique risks, which will depend on its location and susceptibility to natural perils; your risk tolerance; and your emergency budget. 

A home in a suburban neighborhood.

If your property is in a secure area and you have enough funds to cover unexpected emergencies, investing in a simple insurance policy should be enough.

It is important to do your research before choosing a policy. This will help you find the best coverage for your property at a more reasonable price!

Bottom Line

If you’re renting out a property in Pennsylvania, it is important to invest in landlord insurance.

There are many risks associated with renting out a property, including tenant-induced damages and natural disasters. 

By investing in a comprehensive insurance policy, you can keep your investment protected and your tenants happy

Now that you know more about landlord insurance in Pennsylvania, you’re better prepared to choose the right policy for your rental’s unique needs!

If you have any more questions about landlord insurance in Pennsylvania, you can contact DeSantis Property Management!