Learn the unique factors that affect the price of Pennsylvania landlord insurance, as well as strategies to lower your premiums.
Thinking about buying a rental property in Pennsylvania? While landlord insurance is not required by law in the Keystone State, it’s highly recommended that rental property owners protect themselves and their investment with comprehensive coverage. Here, we explore which factors affect the price of Pennsylvania landlord insurance, which optional insurance policies to consider, and strategies for lowering your premiums.
As a growing rental market, Pennsylvania — and particularly the Philadelphia and Pittsburgh areas — is becoming a more attractive state for real estate investment.
Pennsylvania landlords won’t pay the high price tags and property taxes of neighboring states like New York and New Jersey. With a robust railroad system and proximity to both the East Coast and Midwest, Pennsylvania offers commuters easy access to New York City, Washington D.C., Detroit, Columbus, and more.
That said, Pennsylvania real estate brings some challenges. The major storm systems of the Midwest and Northeast often move into Pennsylvania to cause severe rain, snow, and hurricanes. This means landlords will spend more time and money on property maintenance and repairs. And with so much history in this state — from Founding Fathers to the industrial steel mills — many of Pennsylvania’s buildings are older, which also requires more upkeep.
With the unique risks that Pennsylvania landlords face, purchasing optional endorsements on top of your standard landlord insurance will further protect your investment. Here are some additional coverages and policies to consider:
Your insurance premium depends on a number of factors, including geographic location, property condition, and claims history. You can also reduce your rate by adjusting your desired coverage and deductible. Here are a few tips to help you lower your Pennsylvania property insurance premiums:
In Pennsylvania, you have the option to adjust your standard deductible to lower your topline premium. For this reason, raising your deductible can be a strategic opportunity to lower your premium. That said, be sure you can afford the higher deductible in the event that you need to make a large claim.
Another way landlords can better protect themselves and lower premiums is by requiring renters insurance for tenants. While renters insurance is not required by law in Pennsylvania, some landlords may require it on a case-by-case basis. This is an excellent way to set expectations early on, prepare renters for unexpected situations, and protect your investment.
A great way to prepare for risk and lower your premiums is with a thoughtful safety plan. Prioritizing safety measures means outfitting your property with smoke and carbon monoxide detectors, and installing security and fire alarm systems. It also means regularly conducting inspections to make sure tenants are following the lease terms, like not barbecuing on the roof or smoking in the unit. Some carriers may offer discounts for going the extra mile to prioritize safety. Even if they don’t, it’s a good idea to protect yourself and decrease liability by putting more precautions in place.
As a rental property owner, you understand the unique pressures of renting your home to tenants — especially if you’re in a higher-risk area for crime or flooding, for example. If you’re considering relocation or are purchasing a property for the first time, opt for a property that’s farther away from water sources and high-crime neighborhoods but still in a desirable destination. By reducing your property’s risks, you can potentially save money on Pennsylvania landlord insurance premiums.
In the historic buildings of Philadelphia as well as homes throughout the state, it’s very important to stay up to date with building and safety codes. It’s your responsibility to know the rules, do regular inspections, and maintain the property to avoid negative repercussions and property damage that could have been prevented. If you don’t live nearby, consider hiring a property manager to help you stay on top of maintenance.
While some states and zip codes require minimum coverage or specific policies — as do some mortgage lenders — choosing how much landlord insurance to buy is primarily a personal decision. That said, there are some important factors to consider when setting the limits of your personal property and liability coverage in Pennsylvania, including:
By answering these questions, you can make a more informed decision about how much coverage makes sense for you and your property.
Navigating lengthy property insurance policies is difficult in any state — but especially one like Pennsylvania. Committed to enhancing the landlord experience, Azibo is the only national online commercial insurance producer focused solely on independent landlords.
Landlord insurance typically costs about 20% more than homeowners insurance. According to NerdWallet, the average cost of homeowners insurance in the U.S. is about $1,784 per year. This would put the average landlord premium at approximately $2,141 per year. Yet many Azibo customers pay annual premiums under $1,000 for landlord coverage. We’re proud to provide you with quick access to a curated set of high-quality insurance carriers — so you can get the right coverage, at the right price, for your rental business.
Ready to put insurance headaches in the past? Azibo is here to help. Simplify the Pennsylvania property insurance process and get your free quote today.
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Azibo Insurance Services LLC, a wholly owned subsidiary of Azibo Inc, is a licensed insurance producer. Contact us to discuss your specific insurance needs.
Disclaimer: The information provided in this post does not, and is not intended to, constitute insurance advice; instead, all information, content, and materials are for general informational purposes only. This content may not constitute the most up-to-date insurance information. Readers must contact a licensed insurance agent or company to obtain quotes, advice, and guidance with respect to any insurance matter. No reader, user, or browser of this article should act or refrain from acting on the basis of information herein without first seeking the advice of a licensed insurance producer.
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