Rental Property Insurance in Connecticut

What is rental property insurance?

Rental properties can provide substantial long-term returns, but they also require significant investments. Rental property insurance can help landlords in Connecticut protect the properties that they invest in.

Rental property insurance is tailored for protecting landlords’ rentals against a range of risks. Policies may also insure landlords’ income, and landlords themselves too.

When do Connecticut landlords need investment property insurance?

Investment property insurance is broadly recommended for most landlords who have rental properties in Connecticut. Not insuring can result in catastrophic losses if a property is damaged. 

Rental property policies, specifically are primarily for smaller properties that have fewer than 5 units. Larger properties that have 5+ units usually need a different type of investment property insurance, such as apartment complex insurance or something else.

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What insurance protections do landlords need?

The exact insurance protections that landlords should have depend on their properties and situations. Nonetheless, there are several protections that most landlords can benefit from:

• Dwelling Coverage: Typically insures against damage to the rental building itself, and possibly to other structures too.
• Landlord Contents Coverage: Typically insures the items that a landlord might have at the rental property, such as appliances, a snowblower, a lawnmower, and furniture in furnished units.
• Loss of Income Coverage: Typically insures against unreceived rental income if a property becomes uninhabitable due to a covered disaster.
• Rent Guarantee Coverage: Typically insures against unreceived rental income resulting from tenants’ inability, unwillingness, or failure to pay their rent.
• General Liability Coverage: Typically insures against common accidents on the property that could lead to lawsuits alleging landlord negligence, such as injuries sustained by tenants or other parties.
• Legal Assistance Coverage: Typically insures against costs associated with legal actions not related to liability claims, such as attorney fees for evictions or judgments.

Can rental property policies cover mixed-use properties?

Rental property policies are mainly designed for insuring smaller residential rentals. They don’t necessarily have the additional protections that a mixed-use building would require. A different type of investment property is usually needed for mixed-use properties.

When should landlords get rent guarantee coverage?

Landlords generally should have rent guarantee coverage if they’re dependent upon rent payments to sustain monthly cash flow. This can be when a landlord needs their tenant’s payment to cover their own personal bills. It also can be when a tenant’s payment is used to pay a financed rental property’s loans, in which case the lender will likely require rent guarantee coverage.

Landlords who aren’t immediately dependent upon rent payments might choose to forgo rent guarantee coverage. Skipping any coverage requires careful consideration, however. An insurance agent who specializes in investment property insurance can help landlords evaluate their need for the protection.

Can one rental property policy cover several properties?

Many rental property policies are able to insure multiple rental properties, provided they’re similar to one another. A knowledgeable insurance agent can check what policies would cover multiple properties.

How much are premiums for rental property policies?

The cost of insuring a rental property varies, as a property’s location, size, number of units, and construction can all influence premiums. Coverage and limit selections do too, as can many other details.

For an accurate quote that’ll show how much insuring a specific property would cost, landlords can compare policies with an independent agent. An independent insurance agent will be able to check quotes from several different insurers.