The ranks of the landlords are growing. Along with an increasing number of “accidental landlords”, real estate investors now account for close to 20 percent of all home resales, according to the National Association of REALTORS®.

If you plan to buy a rental property in St Paul , or to convert your current residence for long-term rental, make sure your home is properly insured.

A traditional homeowners insurance policy may be unsuitable for landlords.

A landlord insurance policy typically covers the home itself; the owner’s possessions in the home; structures on the land including garages and sheds; and, minimal liability coverage in the event of injury or lawsuit.

It’s common for landlords to increase that minimal liability coverage, adding an umbrella policy for $1,000,000 or more. Umbrella policies protect your home from an unfavorable lawsuit related to just about anything — housing-related or not. 

Optionally, a policy may includes provisions for “lost rental income”.

Annual premiums for a landlord insurance policy are often 20% more costly than for a standard homeowners policy. This puts the average landlord insurance premium near $950 per year.

Premiums vary by state, too. The top 3 most expensive states in which to insure a rented home are:

• Texas : $1,752 per year
• Florida : $1,668 per year
• Louisiana : $1,386 per year

At $464 per year, Idaho is the least expensive state in which to hold a landlord insurance policy.

Talk with your insurance agent about your insurance options as a landlord. There are tens of choices and coverages from which you can choose. Let a professional help you pick the best choice.