Landlord insurance is a vital investment for property owners looking to protect their rental assets. Unlike traditional homeowners insurance, which only covers owner-occupied properties, landlord insurance is specifically designed to safeguard landlords’ buildings and land against various losses. This type of insurance typically provides coverage for property damage, lost rental income, and general liability. In this article, we will explore the seven best landlord insurance companies in 2024, highlighting their key features, pricing, and customer service.
Best Overall: State Farm
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State Farm stands out as the best overall landlord insurance company in 2024. With a long-standing reputation for financial strength, including an A++ rating from AM Best and an S&P Global Rating of AA, State Farm is a trustworthy choice for landlords. Their policies offer comprehensive coverage, including identity restoration, business property, and ordinance of law inclusions. State Farm also received excellent ratings for customer satisfaction in J.D. Power’s 2021 U.S. Homeowners Insurance Study. They allow policy customization and offer additional add-ons like data compromise and identity restoration.
Runner-Up, Best Overall: Liberty Mutual
Liberty Mutual is another top-notch option for landlord insurance. With an A rating from both AM Best and Standard & Poor’s, Liberty Mutual demonstrates strong financial strength. While they may not automatically include extras like State Farm, Liberty Mutual allows landlords to tailor their policies according to their specific needs. They offer coverage for physical structures, liability, wind & hail, and fair rental value. Additionally, Liberty Mutual provides discounts for bundling policies and claims-free discounts.
Best for Bundling Policies: Allstate
Allstate shines in the realm of bundling policies. With over 113 million proprietary policies worldwide, Allstate is a reputable choice for landlord insurance. They offer multi-policy discounts for customers with multiple rental properties or other types of insurance policies. Allstate’s landlord policies include coverage for dwellings, other structures on the property, vandalism, burglary, fair rental income, building codes, and liability. They also provide access to flood insurance and umbrella coverage for enhanced protection against financial losses.
Best for Multi-Unit Properties: Farmers
Farmers Insurance is well-suited for landlords with multi-unit properties. While many providers focus on single-family homes, Farmers specializes in insuring rental properties with multiple units. Their policies cover property damage, liability, and optional coverage for loss of rent, personal property, personal injury, and other structures. Farmers also offers a unique tenant screening solution called the SmartMove™ Solution, making it easier for landlords to screen potential tenants through TransUnion.
Best for Commercial Coverage: American Family Insurance
For landlords with commercial properties, American Family Insurance is the best choice. They offer coverage specifically tailored for commercial landlords, allowing policy customization to meet individual business needs. American Family’s website provides useful tools and resources for landlords. Their policies cover rental structures, general liability, flood insurance, and outbuildings. Additionally, American Family offers commercial umbrella policies to extend coverage limits.
Best for Multiple Properties: Foremost
Foremost Insurance Group is an excellent option for landlords with multiple properties. They offer a unique policy that combines all rental properties into a single landlord policy, ensuring comprehensive coverage and convenience for landlords managing multiple properties. Foremost’s policies include property coverage for named perils, liability coverage, and optional coverage for loss of rents, personal injury, and repair costs. They also offer add-ons like agreed loss settlement coverage for reimbursement in case of covered perils.
Best for Single Family Homes: Travelers
Travelers Insurance specializes in providing landlord insurance for single-family homes. With an A++ rating for financial strength from AM Best, Travelers is a reliable choice for landlords. Their policies cover property damage, liability, medical payments, and loss of use. Travelers allows landlords to customize their policies to fit their specific needs and offers special discounts for bundling policies and claims-free periods.
Conclusion
When it comes to protecting rental assets, choosing the right landlord insurance company is crucial. Each of the seven best landlord insurance companies in 2024 offers unique features and benefits. State Farm stands out as the best overall choice, with competitive pricing, strong financial ratings, and customizable policies. Whether you have single-family homes, multi-unit properties, or commercial buildings, there is an insurance provider that caters to your specific needs. Evaluate your options, compare quotes, and select the landlord insurance company that best suits your requirements.