How much does Landlord Insurance Cost in Missouri?
The average reported landlord insurance cost in Missouri varies by source but generally runs between $1200 to $1700. Actual pricing varies depending on the size and location of your home along with other factors.
The Key Parts of Missouri Landlord Insurance
Dwelling Coverage — This section of your landlord insurance policy pertains to the rental property itself. The cost to rebuild the property may fluctuate over time due to changes in the prices of materials and labor necessary for reconstruction.
Other Structures — This covers all structures on your property that are not permanently attached to the rental building. This includes items such as fences, driveways, sidewalks, and detached buildings like sheds or garages. Typically, this coverage amounts to 10% of your Dwelling limit, with an option to increase it if desired.
Personal Property — While this may not be as relevant for landlords, this section can cover personal belongings you provide to tenants, such as furniture, appliances, or other amenities. Essentially, it protects items you own that are located within the rental property.
Loss of Rental Income — This coverage can assist you in recovering lost rental income when your insured property becomes uninhabitable due to a covered loss, helping to ease the financial burden during the repair period.
Medical Expense Coverage — This provides limited medical expense coverage for guests who are injured on your property. It may also cover certain injuries to others off your property. However, it does not cover healthcare costs for you or other members of your household.
Liability Coverage — This section typically provides a set amount of coverage for specific injuries you may cause to others, as well as coverage for damage to others’ property. When choosing your liability coverage limit, consider factors like your income and the assets you own, to ensure adequate protection.
These are not all the coverages and it is important to ready your policy to understand how you are covered.
Some Good Endorsements to Enhance Your Policy
Personal Injury/Offense Coverage — This coverage protects you from claims arising from personal injuries or offenses, such as slander or libel, that may occur in the course of your rental operations. This helps safeguard your reputation and can cover legal expenses associated with such claims.
Service Line Coverage — This covers the costs associated with repairing or replacing damaged underground utility lines that service your rental property. Issues with water, electricity, and sewer lines can be costly, and this coverage protects you from unexpected expenses related to their maintenance and repair.
Equipment Breakdown Coverage — This coverage protects against financial loss due to the breakdown of essential equipment within the rental property, such as HVAC systems, boilers, and appliances. It ensures you can quickly repair or replace malfunctioning equipment to keep your rental property operational and comfortable for tenants.
Actual Cash Value VS. Replacement Cost
Landlords insurance differs from traditional home insurance in one key aspects. While most standard home insurance policies are typically written at replacement cost, landlord insurance often includes options such as actual cash value, stated value, or replacement cost.
- Replacement Cost: In the event of a loss, a brand new home or apartment would be built
- Stated Value: This option allows you and the insurance company to agree on a predetermined insurance payout specified in your policy.
- Actual Cash Value: Under this policy, the insurance company will account for depreciation based on the age of the home at the time of loss.
Ways To Lower My Landlord Insurance Cost?
Shopping for Landlord Insurance can be overwhelming if you don't use MBG. Our team helps you find shop around without having to sacrifice coverage. If your looking to lower costs here are some quick ways:
- Raise Deductibles
- Bundle with Other Policies
- Remove Coverages You Don't Need
- Get A New Roof
- Shop with An Insurance Broker
Missouri Landlord Insurance FAQ
