Owning and operating a rental property is not for the faint of heart. It takes a lot of work, money, and persistence. Fortunately, the load is much more manageable with the right measures in place, including landlord insurance.
What do we mean by that? Georgia is a beautiful, thriving state. However, it’s not immune to the everyday troubles facing landlords — from tenants’ refusal to pay rent to damage caused by natural disasters. That’s where landlord insurance comes into play.
Below, we’ll explain the ins and outs of Georgia landlord insurance to help you better understand how it all works. Let’s jump right in!
Landlord insurance may not be required. However, it’s vital to prevent you from paying high out-of-pocket expenses to cover damages from certain natural disasters. It takes care of many repair and replacement costs to decrease your financial burden, depending on the level of service you choose.
When it comes to landlord insurance, Georgia is one state where you’ll need it. Why, you might be wondering? In addition to the benefits mentioned above, landlord insurance gives Georgia property owners peace of mind to tackle the unexpected.
In the last 44 years, Georgia has experienced 129 major weather and climate events, including four floods, 67 severe storms, 24 tropical cyclones, three wildfires, and more.
These weather events show that you need proper protection if you operate a rental property business in Georgia. Anything can happen, especially when Mother Nature decides to make an appearance.
Now that you’re thinking about insurance consider making it mandatory for each tenant to carry renters insurance. Not only does it protect them, but it also safeguards you as a landlord. By requiring renters insurance, you reduce your liability for potential lawsuits, minimize relocation costs, and ensure a safer living environment for everyone involved.
Landlord insurance in Georgia has three tiers. The first tier covers the fewest “named perils,” which is a fancy insurance term for some of the events a landlord insurance policy will cover.
As you ascend in tiers, you gain more coverage. The final tier, DP-3, provides liability.
This tier of landlord insurance provides good, basic coverage for a wide range of perils, including:
However, DP1 doesn’t cover property damage caused by theft or vandalism. So, while it does cover many hazards, DP2 includes more.
The DP2 landlord insurance covers everything in DP-1 plus more, including the following perils:
Of course, because landlords get more coverage with DP2, they’ll also pay more. One of the key benefits of DP-2 insurance is unpaid rent coverage. Of course, determining your circumstances and the perils in your area will help you decide which policy is right for you.
An important note is that DP2 doesn’t include liability, though landlords can typically add it for a fee.
When you sign up for DP3 landlord insurance, you will receive the most comprehensive policy, but that comes with a higher price tag. However, you get everything in DP1 and DP2, plus liability coverage, personal property coverage, and many optional add-ons.
Note: Although DP-3 is comprehensive, it doesn’t include every circumstance (e.g., it doesn’t cover earthquakes).
Landlord insurance is a staple if you have a rental property in Georgia. The question is, which landlord insurance is right for you?
Below, we’ll cover a few tips on finding the best provider:
Steadily is one of the nation’s top landlord insurance companies, providing an easy onboarding process and exceptional, comprehensive coverage.
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GEICO is a trusted insurance provider with over 85 years of experience and an impressive 97% customer satisfaction.
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State Farm is a top-rated landlord insurance provider that makes bundling easy.
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Obie might be somewhat new to the block, but they’re making a splash by offering great rates and coverage in all states.
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Launched in 1931, Allstate has nearly a century of experience in the insurance industry. They strive to offer comprehensive coverage at an affordable cost.
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On average, landlord insurance costs around $1280 a year, or $107 per month. However, Georgia has many landlord insurance options, so that that number will vary.
The cost of landlord insurance will be affected by factors such as the provider and coverage level, as well as the age and value of the property. In addition, the risk factors affect the overall price.
Even though TurboTenant doesn’t offer Georgia landlord insurance, we are glad to introduce you to our partner, Steadily, who can help you find the right insurance for your needs.
Once your property is protected and ready to move tenants in, consider TurboTenant for your property management or rental accounting software needs.
Sign up for TurboTenant today to take advantage of our many features, such as online rent payments, tenant screening, a detailed tenant background check, rental advertising, and more.
No, you are not required to get landlord insurance. Georgia property owners would still benefit from this type of insurance in many ways (e.g., peace of mind in the event of a tornado).
Renters insurance ranges between $180-$194 per year in Georgia.
The state doesn’t require renters insurance. However, as a landlord, it’s a great idea to require renters insurance because it can protect your tenants’ personal property and save you from getting blamed should anything happen to their belongings. In that vein, renters insurance reduces the risk of lawsuits in the event of a disaster spanning multiple properties.
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