What to Know About Landlord Insurance in Indiana

Indiana is friendly to landlords, thanks to its low property taxes, no rent controls, a streamlined eviction process, and allowing for security deposits.  

On the flip side, there are several risks to consider, including crime rates and natural disasters. This makes choosing your landlord insurance overwhelming for a first-time investor or anyone with no experience with the state's real estate scene.

This blog post will help you understand how landlord insurance works in Indiana, from coverage options to factors that could affect your premiums.

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What Landlords Should Know About Insurance in Indiana

Property Insurance in Indiana

Property damage poses a high risk for real estate investors. Between natural disasters, crime-related activities, accidents, and the possibility of renting to a bad tenant, you could find yourself with a four or five-figure bill for repairs and renovations.    

In Indiana, natural disasters like storms, tornadoes, floods, and landslides can be common, leaving your property exposed to considerable damage. Unfortunately, it is also among the states where property crime is soaring, with the latest statistics showing over 120,000 reported property crimes. Research has also shown there are about 1,971 property crimes per 100k people, with burglary being over 200 per 100k people.  

Although property crimes like theft may affect a tenant the most, landlords could also suffer. For example, robbers might break the door or bust the window to access the house, shed, or garage. Perhaps the premises are furnished with your personal belongings, and they make away with household equipment and appliances. These circumstances could leave you thousands of dollars out of pocket for repairs and replacement.

Given the growing crime rate in Indiana, the risk of natural disasters, and the possibility of damages from careless tenants, it is crucial to have coverage that provides property insurance. However, not all property insurance policies are the same. For example, some policies will cover claims from vandalism and accidental water damages, while others will not. Therefore, when considering available policies, you need to consider the covered risks and exclusions.  

Protection against damages from flooding is usually offered as a separate policy from your landlord insurance. It is important coverage for any landlord in Indiana, considering it is at a high risk of flooding. Flood insurance also can be offered as a rider, i.e. an additional coverage or endorsement added to your landlord insurance at an extra cost.

Liability Insurance

According to the landlord-tenant law in Indiana, a landlord's responsibilities include providing a property with basic habitability, like adequate heating, weatherproofing, and water. It must also be free from danger and hazards, like lead and mold. Additionally, a landlord must do quick repairs and maintenance when required, where major issues are expected to be fixed within 24 hours.  

That's where liability coverage comes in, to protect you against cases where you are found liable for physical or property damages due to negligence. For instance, failing to repair a broken stairway promptly could lead to a fractured bone for your tenant, their guest, or a third party on the property. This leaves you potentially liable for a hefty hospital bill and a possible legal bill if you lose a lawsuit.

Loss of Use

If your property were rendered uninhabitable due to a covered loss, you would lose your rental income while it is under repair. For example, let's assume a storm strikes and the roof of your rental apartment is blown away. Your tenants would have to move as you fix the place, leading to a loss of income. The loss of use coverage ensures you are reimbursed the rental income you would have otherwise enjoyed if your tenants were still renting the property.

Landlord Insurance Premiums

Landlord insurance premiums in Indiana vary based on a variety of factors, including:

• Age and condition: An insurer will consider the property's age and fixtures like electric wiring, plumbing, and roofing. The older and more out-of-date your property and its fixtures are, the pricier your premium may be.
• Size of the property: Insurers consider the square footage of a property, where larger homes have costlier premiums because they might require more work during repairs for a covered claim.
• Location: Landlord insurance premiums are more expensive for properties located in areas with higher crime rates, natural hazards, and environmental risks.

How to Find the Best Landlord Insurance Policy for Your Needs in Indiana

There are a few things to keep in mind when it comes to landlord insurance in Indiana.

To begin, it's critical to find out if your policy includes the replacement value of your home in the case of damage. Second, you'll want to make sure that your insurance covers loss of rent if your renters are unable to occupy the property as a result of a covered claim.

You'll also want to ensure that your policy provides legal liability coverage if someone is injured on your property. Finally, it's important to consider the deductibles and limits of your policy to make sure that it meets your needs.

How do you know which policy is appropriate for you when there are so many alternatives available?

An insurance agent can be a good way to learn about the different coverage options for landlord insurance and to find a policy that fits your needs. However, keep in mind that not all agents are the same. Some may only have experience with a limited number of coverage options or only represent one insurance carrier, which could limit your choices.

Another option is to use an online insurance broker like Obie, which offers insurance purpose built for landlords and real estate investors.

When you purchase landlord insurance through Obie, you have access to a wider range of options and better coverage than if you went through an agent representing a single carrier. This is because Obie allows you to compare multiple policies from different carriers, giving you the ability to find the best possible coverage for your needs.

In addition, the team at Obie can often offer insights and advice that captive agents may not be able to provide. The company offers instant quotes and easy online purchase for landlord insurance in all 50 states. On average, people save 25% on their premium when they get their insurance through Obie.

When deciding which type of agent to work with, it ultimately comes down to personal preference. For example, some landlords prefer the convenience and flexibility that an insurance broker offers, while others prefer working with a captive agent.

No matter what your preference, make sure to compare quotes from multiple carriers and read customer testimonials before making a final decision. This will help ensure that you're getting the best possible coverage at the most affordable price.

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What Obie Customers are Saying

Reviewing customer feedback can be helpful when making decisions, like choosing landlord insurance. If you're looking to insure your rental property in Indiana, take a moment to see what Obie customers are saying:

"My guy was Nick L, and he was an absolute pleasure to work with. Total professional, I just can not say enough nice stuff about him. Thanks again, Nick!" - L. Fraher

"Received quote and contacted by a representative fairly quickly via email. After doing some comparison shopping, Obie's rates were the most competitive, and I appreciated that they specialized in short-term rentals, as this coverage was for a secondary property I own and rent out frequently. When I decided to purchase the insurance, process was seamless and took less than a few minutes. Haven't had any claims or issues with Obie yet (and hopefully won't need too), but hoping that process is as smooth as the quote / purchase was." - Stephanie D.

“I can't believe anyone would use another insurance company. Great rate and easiest experience ever. Obie will be my insurance company of choice for my portfolio of real estate investments.” – G. Segal.

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Get an Instant Quote from Obie Today

As a landlord in Indiana, you know that having insurance is vital. However, with all the different policy options available, it can be difficult to find the right one at the right price.

Obie offers instant insurance specifically designed for landlords and real estate investors. This means no paper applications, long waits for quotes, or endless meetings with brokers.

What's more, Obie provides the coverage you need at a price that fits your budget. If you're looking for peace of mind when it comes to your rental property, speak with the team at Obie. They'll be happy to help you find the right policy for your needs.

So what are you waiting for? Get an instant quote for landlord insurance from Obie today.

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