Whether you’re renting out a single-family home or an apartment dwelling, landlord insurance is essential in Colorado. It offers much-needed coverage if something were to happen to your property in the event of extreme weather, which isn’t uncommon for the state.
Aside from weather phenomena, landlord insurance covers lost rental income, your liability if you get sued by a tenant, and replacement costs.
Let’s examine landlord insurance and what you should know before pulling the trigger on a policy.
Key Takeaways
- Landlord insurance protects Colorado landlords by providing coverage for your home in case of a fire, hail, or criminal activity. It also makes up for any loss of rental income that may occur if something happens to your home, rendering it temporarily uninhabitable. Note: The preceding are just some common examples; examine policy options for a complete list of coverages.
- Landlord insurance is different from homeowners insurance and renters insurance. It protects rental properties and covers landlords who own rental property but don’t live in the unit. In comparison, homeowners insurance protects a primary residence, and renters insurance protects tenants and should be used to cover a tenant’s belongings.
- If you’re looking for the best rental property insurance in Colorado, you have many options, including Steadily, Farmers, State Farm, Obie, and Geico.
Colorado Landlord Insurance: Why It’s Essential
There are several reasons why landlord insurance is vital in Colorado, and your mortgage company may mandate that you have it, though it isn’t required by law. While every landlord insurance policy provides different levels of coverage, most policies cover your home, detached structures (garages, shops, etc.), liability, legal fees, and loss of rental income (if the home undergoes damage and is unsuitable for a renter until fixed).
It’s important to have coverage because despite being a beautiful and thriving state, Colorado does have its downsides – an above-average property crime rate, harsh weather, flooding, and tornadoes (depending on the city). All of these can lead to a landlord property claim, which is why a Colorado landlord insurance policy is critical.
Cost of Landlord Insurance in Colorado
The average cost of landlord insurance in Colorado ranges from approximately $900 to $2,902, depending on the property size, location, local crime rate, and property value. Research shows landlord insurance costs about 25% more than homeowners insurance.
Just know this: Colorado landlord insurance doesn’t cover a tenant’s personal belongings. As we went over, it covers the landlord’s property. In addition, it can cover the tools used to maintain your property, including lawn maintenance equipment. Consider requiring your tenants to purchase renters insurance.
Colorado Landlord Insurance Companies
We scoured the reviews online to see what real landlords recommend for rental home insurance. Here are some of our top picks for the best landlord insurance in Colorado and what their reviews reveal.
For a more detailed comparison, get quotes from the companies you’re interested in compare them against one another.
Pros
- Easy to apply
- Specialize in landlord insurance for various types of units
Cons
- No other insurance is available
- Relatively new company
Pros
- Bundling available
- Add-ons available (loss of rent, personal property, personal injury, etc.)
Cons
- Customer satisfaction – room for improvement
- It may cost more than the alternatives
Pros
- Highly rated for condos and apartments
- Bundling options
Cons
- It doesn’t cover all home structures
- High premiums
Pros
- Easy to use
- Applies regardless of a tenant in place
Cons
- No weekend customer service
- No app
Pros
- Customizable coverage
- Add-ons available (vandalism, construction costs, etc.)
Cons
- It does not automatically protect against water or sewage (must purchase separately)
- Generally high rates
Colorado Landlord Insurance Conclusion
While landlord insurance in Colorado may not always be required, it is vital to safeguard your investment and ensure you have the proper protection in case your rental property becomes damaged or worse.
How can TurboTenant help?
TurboTenant isn’t an insurance company. Instead, we’re a property management software platform dedicated to helping landlords self-manage their rental properties. Part of that puzzle is educating landlords about landlord insurance.
We strive to provide you with the most comprehensive answers for all your rental property needs. We also aim to protect your investment by choosing the right tenants for your property.
Our screening process includes a tenant background check, credit check, eviction history, etc. If you could use rental property maintenance, TurboTenant also offers convenient, hands-off scheduling and a trusted list of vendors to care for everything you need. Self-managing your rental property has never been easier.
For more, be sure to check out our webinar.
FAQs
Why is landlord insurance more expensive?
Landlord insurance costs more than traditional homeowners’ insurance because it provides additional protection and coverage, including loss of income if it’s unsafe to live in, as well as liability coverage and legal fees.
What is the most common amount for renters insurance?
Colorado renters insurance costs about $120 annually.
Can a landlord require renters insurance in Colorado?
While renter’s insurance isn’t required by law, landlords and property management companies can still require tenants to carry renters insurance.
What is landlord insurance vs home insurance?
Landlord insurance covers rental properties, including repairs if needed and lost rent. Homeowners insurance protects your own house and belongings.
