Minnesota landlord insurance quotes can show you that great coverage doesn't always mean an expensive policy premium. We work with the top insurance companies in Minnesota to help you find cheap home insurance quotes that fit your budget and protect your rental income business. Do you have a rental property in Minneapolis or St. Paul and need to get a better insurance policy that fits your budget? Look around our site to see if we can help you be a better landlord.
Contents Insurance for Landlords
Most landlords need to have their rental home insured against fire, vandalism and water damage but they rarely think about the contents left in the unit. Contents insurance for landlords offers the protection against theft and other perils to the personal belongings. If you furnish your rental or just leave some tools for the tenant to use this is your contents. Be sure to have enough contents coverage to replace the items at today's cost, this otherwise known as replacement cost.
Landlord Insurance Covers More Than Home Insurance
There are three primary coverage's that landlord policies provide that a standard home insurance policy will not. This is not an exhaustive list of the difference in policy types but rather a way to tell them apart.
- Landlord Liability Insurance - Protects the landlord against potential lawsuits related to the operation of that property as a rental. This can include injuries the tenant may get if the property has not been properly maintained by the owner.
- Loss of Rents Insurance - If during a covered loss your tenant's need to move out and you are not collecting that rental income you can get a portion of it back.
- Landlord Building Insurance - This is the primary coverage for the building which is similar to dwelling coverage on a home insurance policy.
Make sure you have the proper policy if you rent your home to others as it could come back to cost you more in the long run. The fact is landlord insurance is not that much more expensive than home insurance and can be less if you minimize certain coverage you don't need.
Cost of Landlord Insurance in Minnesota
The cost to insure your rental property in MN is dependent upon numerous rating factors that home insurance companies use to determine the proper premium. When you own a condo or townhouse the cost of landlord insurance is very minimal because usually you split that cost with the homeowners association which insurers the exterior of your unit. If you insure a single family home or rental complex then your insurance costs are going to be much higher due to the replacement cost of the building is solely your responsibility.
Here are a few of the most common rating factors that insurance companies use to determine your landlord insurance premium:
- Credit rating - This is your personal credit rating which is similar to a FICO score but can be based on other specific criteria such as payment history and bankruptcy.
- Location - The zip code or city that your rental unit is located in has a dramatic effect on your insurance premiums as companies who have big losses in those areas will increase rates to get profitable.
- Building type - This can be numerous things including condo, single family, and townhouse including the materials used to construct the property.
- Claim history - If you have one or more claims in the past 3 years as a homeowner most insurance companies will surcharge your premium. Some companies may not even accept your business if you have more than two.
- Discounts - If you have more business with an insurance carrier they are more likely to offer discounts to keep all of your business with them.
How to Find The Cheapest Landlord Insurance in MN
Each insurance company is different in the way they determine your rate and how much the average policy will cost but here are ways to ensure the lowest cost premium based on the factors above.
- Good Credit - The better your credit the lower the cost of your insurance. Many states are now allowing credit as a rating criteria so get used to it being used. Try to keep your past payment history spotless and a FICO score above 720 is considered excellent.
- Improve the Location - There is not much you can do about the location once you have purchased the rental property but be sure to keep the home well-kept and surrounding trees cut back to minimize potential hazards. The better your property appears the lower the cost to insure it will be.
- Building type - Condo and townhouse owners will likely have a home owners association which will cover the exterior of the home so you are only responsible for the interior. This can save you hundreds of dollars each year. If the unit includes custom building and expensive materials expect to pay more because the cost to replace those items is greater.
- No Claim history - Try not to make a claim if it is a small value of $2000 or less. Most companies look at multiple claims as a sign that you are prone to making claims in the future. If you are deciding whether to make a claim or not contact your insurance agent and ask them personally. Don't call the claim department and ask them because they are likely to document the call and file it for future use.
- More Discounts - Ask about multiple policy discounts and the combination of auto and home insurance. Sometimes combining your personal auto insurance with this policy can save you 20-30% off each policy.
Minnesota's 5 largest cities by population
City - Population
St. Paul 285,068
*Data from 2010 Census Population by the Department of Economic and Community Development.
Common Landlord Insurance Claims in Minnesota
(Most claims cost over $4,300 to repair wind damage)
(Most claims cost over $52,000 to repair damages from fire)
(Most claims cost over $8,200 to repair damage from hail)
(Most claims cost over $5,800 to repair physical damages to property)
(Most claims cost over $16,000 to recoup liability damages)
NOTICE: The amounts listed above are for illustrative purposes only and should not be used to decide what coverage limits you need for your landlord policy. Speak with your insurance agent to determine the proper coverage limits.