Is homeowner’s insurance more expensive for a rental property? Yes, homeowner’s insurance is typically more expensive for a rental property than what you would pay for the same property if it was your primary residence.
This is because insurance companies feel they are taking on a greater risk when insuring a property that the owner doesn’t live in. Makes sense. Tenants don’t usually care for properties the way owner-occupants do.
With this being said, if you’re looking to grow your rental property portfolio, you’ll want to get a commercial policy that will cover all of your rentals. While you’ll still have coverage and a set premium for each individual property, these commercial policies should offer tiered discounts as more properties get added.
So, the more your portfolio grows, the less expensive your insurance gets, per property.
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