(800) 253-1482Tennessee Landlord Insurance
Summary: Landlord insurance in Tennessee is there to cover your investment from a variety of perils but the type of policy you choose will affect not only your premium but also how you're protected. Additional coverage for things like flooding is also available. Finding the best coverage comes down to finding the right protection at the lowest price. By comparing quotes from multiple carriers, you can identify the right insurance for your rental. Estimated Read Time: 4 mins
Owning rental properties can be a great investment but if you aren’t properly protected, it can also be a nightmare. Landlord insurance in Tennessee helps you cover your property and protect your assets.
There are plenty of different policies available and finding the lowest cost is achievable by comparing carriers and getting quotes.
To find the right protection for your needs at the lowest price, compare top-rated landlord insurance companies in your area with our free, no-obligation quote tool below.
Facts About Landlord Insurance in Tennessee
Understanding landlord insurance in Tennessee can sometimes feel intimidating as there are many moving pieces when it comes to your coverage, each property is unique, there are state requirements to consider, etc.
To help you make sense of it all, we’re taking a closer look at many of the facts surrounding rental property insurance that all landlords should know when comparing policies:
Do You Need Both Landlord Insurance and Homeowners Insurance?
Whether or not you need a landlord or home insurance policy will depend on where you live.
Landlord insurance (dwelling fire policy) is used for rental homes you own but do not live in.
Homeowners insurance is used for the property that is your primary residence and won’t provide coverage in homes where the policyholder isn’t living.
If you own a home but someone is renting a room from you, you’ll likely need to have a homeowners insurance policy in place, but this is best discussed in detail with your insurance agent.
The bottom line is that both landlord and home insurance policies protect in different ways and have specific functions.
It’s important to have the right type of protection because if you don’t and you submit a claim, your carrier is unlikely to approve it.
Dwelling Fire Policies
There are three different types of policies providing landlord insurance in Tennessee—DP-1, DP-2, and DP-3 coverage. Here’s how each protects your rental:
|
Insurance Policy |
Description |
|
DP-1 |
The least amount of coverage offering basic protection against perils specifically listed and nothing more. You’ll save on premium but take on more risk as a result. |
|
DP-2 |
Offering a balance in coverage and cost, DP-2 policies also only cover you from perils specifically listed, however, the list is longer in this case. This includes things such as frozen pipes, loss of rental income, electrical damage, etc., but varies depending on the carrier. |
|
DP-3 |
DP-3 is the most common type of landlord insurance available, providing open-peril coverage. This is the closest option to actual home insurance and is the preferred policy type by experts for landlords in Tennessee. |
Landlord Insurance Requirements in Tennessee
Landlord insurance isn't required by law in Tennessee, but it's often a requirement if you have a loan for your rental property.
Even though you don't have to have landlord insurance, there are still requirements of landlords for their tenants.
Your rental must maintain safe and livable conditions. Therefore, if you do have repairs after a loss hindering these conditions for tenants, you're going to need to have them remedied or you could face legal action.
Furthermore, discrimination is never tolerated and you also can't turn off utilities while your rental is occupied.
While landlord insurance isn't needed by law, it can save you a lot of money if something bad happens. It's like buying an umbrella before it rains. Having a policy in place can help you protect your investment, rebuild to proper conditions after a loss, cover a loss of rent should your home be uninhabitable, mitigate potential legal issues, and more.
Covering Flood Damage
To cover flood damage to your rental, you need a separate flood insurance policy.
Your landlord's insurance may cover sudden and accidental water damage, but not issues from general wear and tear, slow leaks, or weather-related flood damage.
In Tennessee, homeowners with federally regulated or insured mortgages in high-risk flood areas must have flood insurance.
However, if a Letter of Map Amendment (LOMA) shows your property is above the base flood elevation, your lender might waive this requirement.
Even in low-risk areas, consider getting flood insurance, as about 40% of flood claims come from these areas.
Rental homes are always at risk of suffering flood damage and exploring both government and private coverage options can help you protect your investment for less.
What Are the Best Landlord Insurance Companies in Tennessee?
Finding the best landlord insurance means comparing rates and coverages among multiple carriers.
It won’t take too long to find many carriers claiming to be the best option for protecting your rental property.
Each carrier will look at the risk of insuring your home to calculate the premium you’ll need to pay. This will look different for each property.
It will also look different among carriers for your rental home because each brand has its own way of calculating risk.
Furthermore, some companies may offer protections, while others don’t. These reasons are why landlords need to compare.
The best way to find the lowest price and the right level of protection for your needs is to compare multiple carriers and policies.
What Do Rental Property Insurance Policies in Tennessee Cover?
Landlord insurance in Tennessee offers protection against various risks, such as damage from riots, civil commotions, vehicles, aircraft, explosions, fire, lightning, smoke, and sudden water damage (excluding floods).
Some rental property insurance policies also cover vandalism, volcanic eruptions, and wind or hail damage.
Depending on your property type, including single-family homes, multifamily properties, apartments, condos, townhomes, or short-term rentals like Airbnb, there are different types of coverage to consider.
Landowner insurance protects your property from damage and reduces risk, offers peace of mind, and can help retain rental income in case of significant loss.
Landlord Coverages
You have options for protecting your rental home. Understanding your coverage options and risks will help you understand how to best protect your rental from losses.
Keep in mind you may save money on premiums by forgoing some coverage, but you’ll need to be prepared to pay for a major or total loss on whatever you aren’t covered for:
Dwelling Coverage
Protection for your rental home’s structure and garages that are attached to it. This is the largest part of your coverage and protects your home the most.
Other Structures Coverage
If you have sheds, garages that aren’t attached to your home, fencing, etc., that are on your property, other structures coverage can help you restore them if they suffer a loss.
Personal Property Coverage
Generally, landlord insurance doesn’t cover your personal property, but there’s an exception.
If you keep items like a lawnmower to maintain the rental, you can get coverage for those essentials.
However, this coverage won’t extend to your tenants’ belongings—they’ll need their own renter’s insurance for protection.
Loss-of-Income Coverage
Some losses are so large, your tenants may not be able to live in your rental home.
However, landlord insurance can help you receive revenue while repairs are being made.
Keep in mind that not all carriers are going to provide this coverage, so you’ll need to shop around and check your individual policy beforehand.
Liability Coverage
Landlords can be held liable if tenants or visitors are injured at their rentals, however, liability coverage can help you cover medical costs and legal expenses.
You may also avoid legal action altogether by having protection.
What’s Not Covered By Your Policy
Rental property insurance policies in Tennessee don’t cover all the risks your home may face.
You'll need extra protection for things like earthquakes, floods, government actions, intentional tenant damage, mold, nuclear hazards, tenant belongings, shared property, and acts of war.
Consult your insurance agent about additional coverage to better protect your rental home.
The Cost of Landlord Insurance in Tennessee
The average cost of landlord insurance in Tennessee typically ranges from $850 to $2,200 per year, depending on several factors.
These include the type and size of the rental, its location, the amount of coverage needed, and whether the rental is usually occupied.
Other considerations, such as the rental price and building materials of the home, also impact how much premium you'll pay.
FAQs About Tennessee Landlord Coverage
Here at Freedom Insurance Group, we are proud to be a resource for landlords in Tennessee and understand there are many questions you might have.
If you need landlord insurance quotes simply click the link or use the tool above.
Below, we’re breaking down a couple of the most common questions we receive about rental property coverage:
Does Landlord Insurance Cover Tenant Injury?
You can have liability coverage for the injuries to tenants through landlord insurance in Tennessee.
However, it’s also your responsibility to keep common areas safe, fix broken steps, clean up hazardous spills, etc.
Failing to do so can open you up to potential lawsuits and complications with your claim.
Do I Need Landlord Insurance if Renting to Family?
Yes, you need landlord insurance if you own a property, live elsewhere, and collect rent. Whether it’s a second home, vacation home, or investment property, if you charge rent, even to family, you should have a policy in place.
