Rental Properties Insurance – Investor Guide to Rental Property Insurance

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Close – Rental Property Insurance Is Essential For Your Real Estate Rentals. Here’s What You Need To Know About Insuring Rental Properties…

Hi, this is Frank Chen with, the only site you need as a real estate investor. Today I’ve got quick video on rental property insurance.

Intro to Rental Property Insurance
The type of insurance coverage landlords need falls under the umbrella term “property and casualty insurance”. We also encourage Landlords to look into Liability insurance, which i’ll cover a bit later in the video.

Homeowners insurance mainly focuses on the coverage for the contents of the house, as a Landlord, you don’t really need that. You need rental property insurance.

Rental property insurance policies are written for structures that are four units or less. Anything above that, becomes a commercial risk, which requires a commercial policy..

The policy is written as a package policy, meaning that it covers a number of what insurance companies refer to as “perils.” These are things like…
– Fire, Hail theft, tornado, hurricane, wind, and water.
– Also covers detached structures on the property like a garage or a storage shed.

Important to have the appropriate rental insurance
Insurance companies assume… (some items require liability insurance in order to be covered)
– the risk for damages to your property
– Covers you against any injuries or accidents that may occur (Note: The Landlord is liable if he is negligible. So anything, that you as the landlord are supposed to fix, if it causes injury or an accident, you are responsible.)
– Covers legal fees
– Loss of rents
– Tax Deductions -

Note: What is listed is not guaranteed for all policies.

Limitations when insuring rentals
– Fire – only landlord property is insured, not tenants
– Limitations on what contents can be insured?
– Clauses for theft
– Does not cover earthquakes – separate policy
– Flooding – natural disaster

Note: Just be sure to consult with your real estate insurance agent on the specifics behind your policy and the limitations.

Selecting an Insurance Company for Rental Insurance
– Price is important – avg $800 for the year
– Legitimate and creditworthy
– Contact state’s insurance department to make sure the company is licensed
– Financial strength – Moody’s standard & poor’s
– Ask for referrals – proven track record
– Check out
– service reps
– speed with which the claims are appraised,processed and paid
– overall satisfaction

To reduce risk
– Insist that your tenants acquire renters insurance – low cost policies
– Periodically, make sure the fire extinguisher is working and the tenant knows where it is
– Show the tenant where the main water valve is, AND how to shut it off.
– Semi-Annual inspections – also check air filters

As a real estate investor, Landlord, it is your responsibility to protect your real estate investments. Especially, when you have tenants. Not every property will need the most expensive coverage, so before spending several hundreds, or thousands of dollars on rental property insurance. Take the time to educate your tenants, and research for the best type of policy or coverage for your real estate investment.

Again, this is Frank Chen with Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.


PlayGirl says:

I have having issues getting insurance Fire Policies on my properties
because they want the policy attached to a main residence and then they
only will cover so many rentals so I need insight on how to fix this issue
so I don’t have uninsured properties and i can continue to grow. Each
house has to have its own insurance policy so …help.

David Fletcher says:

what do you think about Safeco?

Kalim C says:

You are speaking so fast it’s confusing!!! Slow down! I feel like I’ve been
swindled by a conman after watching this whole thing!! I need a cigarette!

johnguerrero79 says:

Good stuff.

benjicummings says:

Thanks for all the helpful information here :)

scooby1inv says:

Guy’s video was informative, keep up the good work. Chris Herbert Hebert

WIllyGilly321 says:

Say less, mean more.

reiclub says:

I just wanted to say “Hello!” to everyone and Thank You for your continued
support. Have a great rest of your day.

Princesss1225 says:

Very good info.

Alvin Phillips says:

Great video. Really informative.


How do you feel abou umbrella insurance? Is it worth it?

Dan O'Donovan says:

Mustafa – just saw this. Please let me know if you are still looking for
renters insurance. I am a licensed insurance broker that can help you out.

Tuk Chamberlin says:

This is great knowledge. You covered so much in 3 min. I will check around
before I purchased the insurance. Thanks

Murray Dan says:

Frank’s entire series is the best anywhere! Thank goodness Frank speaks the
world’s fastest English. :->> He delivers ONLY the facts. Everywhere else,
it’s anecdotes, testimonials and “success stories,” 50 mins video, 5
minutes info. Frank is 5 mins video, 60 mins info! To me, the ultimate
compliment is the one that’s worthy here: if I were going to tell other
people how to invest in real estate, Frank’s way is exactly the way I’d do

rmccarty33 says:

Love the videos, BUT can you please get a better camera.

Karen Bloom says:

Thanks for a great informational video! We have tenants in a home we could
not sell when we had to move from TN to TX. We do have rental insurance,
but not sure if the tenants have their own renters’ insurance. Something to
double check!

jeramytollar says:

Once again you have hit a home run in terms of helpful information for real
estate investors!

kaylewintress says:

I have watched this video and others from your channel and this makes me
want to get back into the real estate investing market. You have me

FCM says:

Good info.

mlkfrevr says:

thx for tips on how to select a good insurance company

Mustafa Al-shammary says:

looking for a rental insurance that would cover the theft and lost stuff
suck like laptop, TV..etc. I live in apartment.

stan Tuchi says:

This really helps clear things up for me–I learned a lot about rental
property insurance here.

tnsinclair2 says:

You continue to provide a great help to our industry. Thanks for all this.

pcicotta1 says:

If the property value has gone down will the insurance rates drop

Lorenzo Earnest says:

good info. on video

bondbeatle says:

Great advice to follow up on concerning R.E. investing.

cappyjones says:

Is your name “Frankch?”

Rita Lang says:

You are very clear on these explanations of property insurance-nicely done

Jake11bravo says:

I’ve been really looking into rental property and had no idea what to
expect when it came to insurance. This video was really very helpful

Chris Crom says:

Awesome. To the point and very informative!

Steve Miller says:

Great video. I am an insurance agent and have a few videos dedicated to
some of the topics covered here. This is what people need to know. The
water shut off valve location for tenants is key! Landlords should also ask
about vacancy exclusions in their policy. If your home is empty for 30 days
or 60 days it can change the covered perils.

Okaythen001 says:

my cousin inherited a lot of money, he wanna invest in some houses but he
can’t get mortgages since he doesn’t have a job, is it smart to buy houses
with cash? I told him to buy with cash for the first few houses and rent it
out….after that you can use the rent to get mortgages..what do you guys

paul soto says:

very informative thanks frank

bslandc says:

Thank you for the great tips, reminders, advice. etc.

harry leonard says:

I like the fact that you covered different types of rental properties
insurance and benefits of each.

Claims Delegates says:

Funny, I just uploaded a video talking about a recent experience I had when
a landlord had kept his old HO-3 policy in place when he rented out his
house. He had some serious coverage issues that wouldn’t have existed if he
had the correct policy in effect. After my video plays, YouTube recommended
THIS video. Good stuff sir.

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