So you're a landlord and you maintain strong leases and good tenant-screenings - what's the worst that could happen?... More...
Why Is Insurance For My Investment More Expensive Than My Own Home?
Insurance for non-owner occupied and investment properties is ALWAYS more expensive than comparable insurance on an owner-occupied residence or secondary home.
The reason for this is that from a statistical standpoint regarding claims, investment and non-owner occupied properties represent a much higher likelihood of loss since they are not often maintained in the same manner as a personal primary residence. In addition, these property types usually have a revolving occupancy status with changing tenants and they are often located in areas with a greater chance of loss, such as coastal areas, brush areas, neighborhoods with multiple rental units, etc. Furthermore, depending upon the situation and company the property is insured with (such as surplus lines), there may be additional state taxes and policy fees charged in addition to the pure premium itself.
