Situated amidst the Great Lakes and the Appalachian Mountains in the Midwest, Indiana has a diverse economy, affordable housing options, and a growing population, making it an attractive destination for potential homebuyers and investors alike. Although owning a rental property in the Hoosier state can be a great way to make an income, know that it comes with its own set of unique risks that needs the protection of the best landlord insurance in Indiana.
What is landlord insurance?
Unlike homeowners insurance which is designed to protect individuals who own and occupy their property, landlord insurance is specifically tailored for property owners who rent out their premises to tenants. Properties that are being rented out to tenants have a different risk assessment, and the insurance policy for these types of properties needs to reflect that. Landlord insurance policies usually include dwelling coverage for the property structure, general liability coverage, and loss of business income coverage.
Who needs landlord insurance?
Anyone who rents out their property to tenants should get landlord insurance. Whether it’s a single-family rental, a multifamily unit or an apartment building, a commercial landlord insurance policy is the best choice for protecting your property assets.
No matter if it’s a side business or your full-time job, as a landlord you are a business owner and having the right insurance coverage is tremendously important. The state of Indiana does not require landlords to get insurance coverage, but if you are taking out a mortgage to finance the property, it will mostly likely be required by the lender.
How much is landlord insurance in Indiana?
According to simplyinsurance.com, the price of landlord insurance in Indiana was slightly below the national average of $126 per month. This is just a very general average though, and the cost of landlord insurance will vary a lot according to the following factors:
- Property location
- Size, age, and condition of the property
- Coverage limits and deductibles
- Your personal insurance history (prior claims etc.)
- The carrier's pricing guidelines
The best way to find out how much your rental property would insure for is by getting a quote. Honeycomb is licensed to sell landlord insurance policies in Indiana, and you can get a quote here.
Can landlords require the tenant to get renters insurance?
No federal nor state laws require tenants to get renters insurance in Indiana, but as a landlord, you could make it part of the lease agreement. Having renters insurance is usually in the best interest of both tenant and landlord, and although prices vary, the average cost is around $12 per month according to NerdWallet. If you do choose to make renters insurance part of the lease agreement, make sure you stipulate the minimum coverage amounts.
Is Indiana a landlord-friendly state?
Indiana is generally considered to be one of the most landlord-friendly states in the country. It means that the state's laws and regulations tend to favor landlords in various aspects of the landlord-tenant relationship, such as:
- Low property taxes: Indiana's average effective property tax rate is 0.75%, while the national rate is 0.99%.
- No rent control laws: Indiana does not have any rent control laws, meaning landlords can typically adjust rental rates as they see fit without government-imposed restrictions.
- Lease Terms Flexibility: Landlords in Indiana have a lot of flexibility when it comes to defining property rules, restrictions, and other conditions
- No license requirements: The State of Indiana does not require landlords to get a license.
Special considerations for landlords in Indiana
Indiana experiences a diverse range of weather conditions throughout the year. Proper insulation is essential to keep the indoor environment comfortable during extreme temperatures, and having functional heating and cooling systems is important to ensure tenant satisfaction.
Summers are typically hot and humid, with temperatures often reaching the 80s and 90s Fahrenheit (high 20s to mid-30s Celsius). Thunderstorms and heavy rainfall are common during this season, which can lead to flooding and potential water damage in properties. Landlords should address any potential drainage issues to prevent water damage during heavy rainfall.
Winters in Indiana are typically cold, with temperatures dropping below freezing. Snowfall is frequent, and blizzards are not uncommon, potentially causing issues with heating systems and creating hazards for tenants in terms of ice and snow removal. Providing clear guidelines for snow and ice removal on the property can help prevent accidents and maintain safe walkways during the winter months.