Want to jump straight to the best? Get a quote from Lemonade for Renters Insurance.
The exposure created by rental property ownership is riskier and differs from that of a traditional homeowner. No matter where you own property, rental property insurance can provide the proper coverages to protect your investment. It is critical for landlords to understand Ohio rental property insurance coverages, including the perils it covers and the exclusions listed in the policy. In the event of a loss, there will be money to rebuild without losing rental income. Learn more about Ohio rental property insurance now.
Best Ohio Rental Property Insurance
- Best Overall: Lemonade
- Best for Comparing Quotes: Policygenius
- Best for Insuring Multiple Properties: Steadily
- Best Warranty Coverage: Choice Home Warranty
- Best for Military: USAA
The Best Renters Insurance
Every insurance company has its own nuances. The rental property insurance market is less standardized than homeowners and auto insurance policies.
To help you compare insurance companies, we are providing reviews of some of the most popular insurance companies for Ohio rental property insurance.
Best Overall: Lemonade
- Best For:Best For Seamless, 100% digital sign-upVIEW PROS & CONS:securely through Lemonade | Renters's website
Lemonade is more than an insurance company. It is an organization that is designed for social impact. The company takes a modern, innovative approach to quoting homeowners, renters, car, pet and life insurance.
Lemonade has a strong reputation for excellent customer service, paying claims quickly, and offering competitive pricing. Many notable companies back Lemonade.
Pros
- Lemonade offers a platform that helps you make the right choices and pull a quote quickly, which can help renters who need to get proof of insurance before they can sign a lease
- When you use Lemonade, you can easily make changes to your policy or reach the customer care team
Cons
- You may prefer personal service in an office that you cannot get from Lemonade
Best for Comparing Quotes: Policygenius
Policygenius is an insurance marketplace as opposed to an insurance provider. Its website offers 1-stop shopping with online tools for quotes from multiple insurance providers.
Each insurance company rates its risks differently. By getting multiple quotes, you can identify the company that has the coverages you need at a premium that works within your budget.
Pros
- You can use these quotes to compare the carriers on a deeper level
- Because you don’t need to shop around, you can get coverage fast when you’re ready to move in
Cons
- You cannot guarantee that the carriers you find will offer quality service
Best for Insuring Multiple Properties: Steadily
- Best For:Insuring multiple propertiesVIEW PROS & CONS:securely through Steadily's website
Steadily covers nearly every type of landlord dwelling, including single-family homes, multi-family homes, apartment buildings, vacant homes, homes undergoing renovations, condo units, manufactured homes, and more.
Unlike other rental property insurance providers, they also insure fix-and-flip homes.
Pros
- Because you can cover virtually anything with these policies, you can seek several coverages all in one place
- Property owners can pivot quickly when seeking coverage on this platform
Cons
- There’s no way to know if you can get enough coverage for the unique properties you need to insure
Best for Older Homes: Choice Home Warranty
Choice Home Warranty is a home warranty service that insures systems and appliances in a rental property. The company services landlord properties nationally. It is available for landlords in an emergency, and it does not exclude systems and appliances that are old.
Choice Home Warranty has almost 15 years in the business, and its customer service program is highly-rated.
Pros
- You can use these plans to protect homes in which you’ve recently invested
- You can also offer these warranties to buyers if you ever sell one of your properties
Cons
- A home warranty is not insurance
Best for Military: USAA
USAA honors military personnel and veterans by offering them competitive rates on landlord policies, homeowners insurance, auto insurance and more. For rental property insurance, USAA offers coverage if an insured party is renting out a room as well as a tenant screening program.
This program requires membership and is open to pre-commissioned officers, military spouses, and their children. Members get support with multiple moves and sudden moves, which can be stressful.
- Coverage for a tenant’s property
- Flooding
- Earthquakes
- Maintenance to the dwelling and property
- Damage caused by a tenant (unless an endorsement has been added covering it)
Pros
- You can pass this coverage to other family members who are investing in real estate
- You can also bundle your coverage with standard insurance like home and auto
Cons
- USAA is not available to everyone
Rental Property Insurance Definition
Rental property insurance is like a homeowners insurance policy in some ways. It covers the specific risks that expose landlords to loss or liability when a tenant rents a dwelling for a period of time.
The 3 main components of rental property insurance are property damage, liability coverage and loss of rental income. In the event of a fire or other natural disaster or a lawsuit due to an injury, rental property insurance pays to rebuild the structure and settle lawsuits.
Rental Property Insurance vs. Homeowners Insurance
The most notable difference between rental property insurance and homeowners insurance is who occupies the dwelling. There are other differences as well.
Rental property insurance is also commonly known as dwelling fire insurance or landlord’s insurance. With this type of policy, a tenant occupies the dwelling. A rental property insurance policy does not cover the tenant’s personal property. To have coverage, a tenant must purchase a tenant insurance policy.
A rental property insurance policy is of value to a landlord because it covers the dwelling for certain perils and liability. In addition, a rental property policy also covers items to service the property, such as the furnace, water heater, air conditioning unit, lawnmower, snowblower, and more. This type of policy will also cover loss of rental income if the dwelling becomes unlivable because of a covered loss like fire.
A homeowners insurance policy also covers the dwelling and liability. It assumes the dwelling is owner-occupied, and it covers their personal property. Unlike a rental property policy, a homeowners insurance policy covers loss of use for the homeowner. If the dwelling sustains damage due to fire, wind or other covered peril, the policy will pay out subject to the deductible.
Landlord Insurance vs. Rental Property Insurance
Landlord insurance and rental property insurance are different names for the same type of insurance policy. They have the same coverages, both are subject to a deductible, and both are for tenant-occupied dwellings. Landlord insurance and rental property insurance policies both cover for named perils, and both policies list exclusions.
What Does Landlord Insurance Cover?
There are 3 main components to landlord insurance.
- Dwelling coverage: Pays for losses to the structure due to a covered loss.
- Liability: Pays for injuries you are legally liable for if someone gets hurt on property that you own and insure.
- Loss of rental income: Pays to replace the income you lose if a covered peril damages the dwelling you own and a tenant cannot live there.
Landlords need to keep good records on rental income and rental property repairs for tax purposes as part of responsible real estate investing. The IRS provides valuable tips for landlords to ensure you are taking care of your federal tax responsibilities responsibly.
Common Named Perils
The perils covered under a rental property insurance policy are usually not as comprehensive as a homeowners insurance policy. The most common type of rental property insurance is a DP-3 policy, also called the special form.
A DP-3 policy is an “open perils” policy that covers all risks unless they are expressly excluded from the policy. Damaged personal property that is covered is only covered for named perils.
Most DP policies cover things like:
- Fire
- Lightning
- Wind
- Hail, ice and snow
- Acts of war or terrorism
- Riot
- Explosion
- Smoke
- Vehicle and aircraft damage
Landlords may also be able to add an endorsement for vandalism and malicious mischief coverage.
Common Exclusions
While a DP-3 policy covers all risks, policies usually exclude certain types of coverage. The most common types of exclusions are:
Find Ohio Rental Property Insurance Today
Rental property insurance can be confusing as to what the landlord’s responsibility is and what a tenant’s responsibility is. The right rental property insurance coverages protect your rental properties, whether they are duplexes, townhomes, condos, single-family homes or another type of dwelling.
Check out Benzinga to learn more about rental property insurance today.
Frequently Asked Questions
Do I need homeowners insurance for a rental property?
If you have a mortgage on your rental property, your lender will require you to show proof of rental property insurance coverage. Even if you do not have a mortgage on a rental property, it is a good idea to acquire a rental insurance policy.
A major catastrophe such as a fire or tornado could cause a total loss at any time. Without insurance, you are on the hook to rebuild using your own money.
How much is rental property insurance?
Many factors play a role in calculating rental property insurance premiums. Insurance providers consider the size, location and age of the property. They also consider the landlord’s credit rating and claims history.
Depending on safety features and updates, landlords may qualify for discounts. There are too many factors to provide a range, but you will have a good idea when getting multiple quotes.
Does landlord insurance over renters?
Landlord insurance does not cover renters because landlord coverage only protects the building and the owner’s assets.
About Maurice Draine
Maurice Draine is a former insurance agent, broker, underwriter tech, and agent sales support rep with over 15 years of professional writing experience. Maurice helps insurance, financial, and various online and ad agencies, create the words that drive customers to their websites and keeps them there.