How Much Does Landlord Insurance Cost in Each State?
Lia van Eyk
When considering a rental property investment, there are a number of considerations to calculate from a financial perspective. From ongoing maintenance costs, to property tax, to landlord insurance - these costs can add up and influence the profit from your real estate investment. For investors with the flexibility to invest in real estate portfolios in different States across the country, there are a few landlord-friendly States to consider from a financial and regulatory perspective. For the purposes of this article, we'll dive into the cost of landlord insurance by State, and a few other factors to help you calculate your potential costs of owning rental property in each State.
Property taxes are very low in Alabama, just 0.42% (2nd lowest in the nation). This makes the state an excellent place to invest in rental property. There are no rent-control laws, and also, the law prohibits tenants from withholding rent in the case of the landlord not making repairs on the property. Landlords have the freedom to set late rent fees rates.
The median cost of landlord insurance in Alabama is about $1089 per year, which is slightly lower than the national average.
Arizona is widely known as a landlord-friendly state. The landlord-tenant law is more relaxed than in its neighboring state, California. Getting landlord insurance in Arizona is a good choice since the desert conditions leave room for wildfires, explosive monsoons, and strong straight winds. Here are some tips for landlording in Arizona:
No limit on late fees (unless it is a mobile home that can’t exceed $5 a day).
Landlords are required to leave a 2-day notice of entry if they need to access the property.
The security deposit must be returned 14 days after the tenant vacates the property.
The cost of landlord insurance in Arizona is about $839 per year, which is significantly lower than the national average.
Arkansas is one of the most landlord-friendly states in the nation. Being a landlord in Arkansas gives you plenty of freedom to practice business on your terms.
Landlords are not required to make repairs (unless the lease agreement states otherwise)
In the event of non-payment of rent, landlords can start the eviction in 5-day’s time.
The cost of landlord insurance in Arkansas is about $1121 per year, which is slightly higher than the national average.
There is plenty of opportunity for landlords in California, with 45% percent of households being renters. Also, the state of California has the largest number of rental units in the U.S. However, California is prone to natural disasters that pose a threat to real estate:
Number 1 state for homes at risk of wildfires in the U.S
2nd most natural disaster-prone state in the country
The cost of landlord insurance in California is about $896 per year, which is lower than the national average.
Colorado is a good place for being a landlord with property tax on average just 0.49%. The eviction process favors landlords and has other rental laws that give landlords freedom to practice. However, Colorado ranks 5th on the list of states at most risk of natural disasters. Colorado sees a lot of hail, wind, and heavy snowstorms and has plenty of wildfires in the summer.
The cost of landlord insurance in Colorado is about $1599 per year, which is higher than the national average.
Connecticut is known as being a tenant-friendly state as the laws tend to favor the renters more. However, in 2019 34.97% of households were renters, and renting is a better option than buying if we look at the price to rent ratio (23.6). Even though the state has strict landlord-tenant laws, there is a good opportunity for landlords.
The cost of landlord insurance in Connecticut is about $1653 per year, which is higher than the national average.
Delaware’s landlord-tenant laws tend to favor the tenants over the landlords. For example, the landlord needs to provide a 48-hour notice before entering the property. Here are some statistics from Mash Advisor:
Rental Income on Airbnb: $2,529
Median property price: $362,097
Traditional rental income: $1,472
Cash on cash (Airbnb) return: 3.3%
Cash on cash (Traditional) return: 1.3%
The cost of landlord insurance in Delaware is about $2561 per year, which is significantly higher than the national average.
Florida is a fantastic place to be a landlord because Florida is known as a landlord-friendly state with one of the highest populations of renters in the nation. An estimated 2.64 million of the 19 million people residing in Florida are renters. That consists of 13.3% of the state’s population. Florida also does not have rent control. Find out how much a landlord can increase rent in Florida.
Make sure that you have landlord insurance because Florida is amongst the top states for occurring natural disasters. Since 1950 Florida has had 65 significant disasters that have been declared.
The cost of landlord insurance in Florida is about $1722 per year, which is significantly higher than the national average.
Georgia is known for its favorable laws towards landlords. The number of renters has been increasing over the last 15 years with 37% of households renting. Georgia does, however, have its share of natural disasters so it is wise to protect your investment against:
Tornadoes and storms that produce high winds
Hurricanes/ tropical storms
The cost of landlord insurance in Georgia is about $1280 per year, which is slightly higher than the national average.
Idaho has a property tax rate of only 0.72% (ranking ninth-lowest in the United States). In terms of job security, Idaho’s jobs are expected to grow 1.5% annually in 2022. Idaho is a landlord-friendly state with laws that give landlords more freedom to conduct business. These favorable market conditions are matched with a higher entry barrier, with the average median home price being $398,900.
The cost of landlord insurance in Idaho is about $1089 per year, which is right on par with than the national average.
Even though landlord insurance is not required by law in Illinois, it is a wise choice to get it. The state is quickly becoming one of the hottest rental markets in America. Illinois has:
Hailstorms (record hail ball measured over 4″ in diameter!)
Tornadoes (on average 54 per year)
Also, Illinois is a tenant-friendly state and has strict laws regarding landlords. Make sure you’re covered!
The cost of landlord insurance in Illinois is about $1004 per year, which is aligned with the national average.
Indiana is amongst the top five landlord-friendly states in the nation. Indianapolis is the most prominent city because of the high occupancy rates. The landlord-tenant laws in Indiana preserve the rights of the landlord. Here is why being a landlord in Indiana is good:
No rent control laws
Allowed to charge security deposits
Landlords can charge late fees
The eviction process is streamlined
The cost of landlord insurance in Indiana is about $1110 per year, which is in alignment with the national average.
The median home sales price in Iowa was $374,900 (2021), which is 16% higher than the previous year. Iowa is a reasonably landlord-friendly state that has laws benefiting both the landlord and tenant. From 1953 to 2019, Iowa declared 67 significant disasters. Iowa is prone to floods since it has level farmland. Hail and severe storms are not uncommon in Iowa, so it is important to get landlord insurance to cover your rental properties!
The cost of landlord insurance in Iowa is about $845 per year, which is significantly lower than the national average.
Kansas is a landlord-friendly state that has less bureaucracy than other states–such as no rent control. The median house price is on the lower end in the United States at $175,500. Despite these favorable conditions, Kansas gets plenty of natural disasters that can damage rental properties. Here are some storms that damage houses in Kansas every year:
Severe storms– Kansas gets 50 thunderstorms per year that usually include large hailstones that can destroy roofs
Floods– Kansas is located in the “great plains,” and the level ground makes flooding a severe threat.
Tornadoes– Kansas is in the “tornado alley” and has 88 and 96 tornadoes each year.
The cost of landlord insurance in Kansas is about $1082 per year, which is on par with the national average.
Kentucky is a great place for new landlords. The low cost of living and affordable home prices make for a good starting base. In 2019 32.99% of households were renters in Kentucky. Here are some notable highlights of being a landlord in Kentucky:
Eviction laws are lenient (7 to 14 notices; depending on the situation)
Security deposits are returned 30-60 days upon lease termination (depending on disputes)
The cost of landlord insurance in Kentucky is about $1014 per year, which is significantly lower than the national average.
Landlords in Louisiana have the freedom to set and raise rental prices, evict tenants, and enter properties when they wish, which makes it a landlord-friendly state. With a low entrance barrier, Louisiana has a Median Home Value: $171,903. However, Louisiana has extreme weather conditions. Hurricanes and flooding is the top threat to properties (sometimes hundreds of miles inland). In 2016, Hurricane Sandy ravished Louisiana. It is a wise choice for landlords to get rental property insurance in Louisiana!
The cost of landlord insurance in Louisiana is about $2155 per year, which is significantly higher than the national average.
Maine is a tenant-friendly state, with 27.81% of the population being renters. Also, the state has one of the lowest crime rates in the nation. Being a beautiful state and a top choice for retirees, Maine is a great place for owning vacation rental properties. Though the burglary rate in this state is moderately low, rental units are statistically more likely to be targeted by criminals than homes occupied by homeowners.
You worked hard to get your rental property; getting landlord insurance in Maine is a good idea!
The cost of landlord insurance in Maine is about $1319 per year, which is significantly lower than the national average.
In Maryland, 33.17% of households were renters (2019). Maryland is a landlord-friendly state and offers real estate investors a good ROI. The state has some of the highest annual gross rental yields of 28.5% in the nation. Though there is good opportunity, some of the risks that pose a threat to rental properties are:
It’s a safe choice to get landlord insurance for your rental property in Maryland!
The cost of landlord insurance in Maryland is about $950 per year, which is slightly lower than the national average.
Massachusetts is not a “landlord-friendly” state, with laws that preserve the rights of the tenants. Make sure that you are protected against any liabilities by getting landlord insurance for your rental property in Massachusetts!
In 2019 37.84% of households were renters in the state. According to previous trends, Massachusetts has a healthy and stable real estate market.
The cost of landlord insurance in Massachusetts is about $1583 per year, which is significantly lower than the national average.
Michigan has landlord-friendly legislation. The workforce is spread evenly across manufacturing, healthcare and social assistance, retail, and education services. Though, Michigan’s property tax is marginally on the high side at 1.64%. With a low cost of living, the demand for rental properties increases as people move to Michigan. While the Michigan real estate market is remarkably inexpensive, it is also commendably profitable. While the landlord climate is favorable in MI, landlords should get landlord insurance to help protect their investments. Here are the common natural disasters in Michigan:
The cost of landlord insurance in Michigan is about $1018 per year, which is on par with the national average.
Minnesota is considered a semi landlord-friendly state. The median home price is $308k. Southern Minnesota is in “tornado alley,” and northern Minnesota has extreme winter conditions. If you own a rental property there, it is in your best interest to get landlord insurance.
The cost of landlord insurance in Minnesota is about $1393 per year, which is slightly higher than the national average.
Mississippi is a landlord-friendly state; there is no limit on how much a landlord can charge for security deposits; also, landlords have 45 days to return security deposits after lease termination. Mississippi is highly affordable and an excellent state for new landlords. The Median Home Value: $131,031 in 2021 but has a slightly higher than average unemployment rate of 6.3% in 2021. Between the years 1953 and 2019, Mississippi had declared 75 major disasters, mainly severe storms and hurricanes. Landlords should consider getting landlord insurance to take the risk out of their rental property investments!
The cost of landlord insurance in Mississippi is about $783 per year, which is lower than the national average.
Because of Missouri’s geography, the state is commonly ravaged by natural disasters. Some of the common disasters are:
Severe storms (straight-winds
Since 1990, Missouri has had 40 major natural disasters. If you have a rental property in Missouri, then it is a safe choice to get landlord insurance to protect your property! On average, Missouri has higher crime rates than the rest of the nation. But the good news is Missouri is a landlord-friendly state with legislation the preserves the rights of landlords.
The cost of landlord insurance in Missouri a is about $1165 per year, which is slightly higher than the national average.
Montana is known for its rolling grass fields and beautiful nature. Also, being a landlord in Montana is great. Montana doesn’t have any rent control mandates, and the landlord-tenant laws give landlords adequate freedom to operate. However, Montana has some other inherent risks for landlords.
Montana ranks highest among the nation for the number of properties at risk of wildfire— over 137,800 homes, or 29%, are considered at risk.
The flood season starts mid-May and lasts until mid-June.
The cost of landlord insurance in Montana is about $1298 per year, which is slightly higher than the national average.
When you pair low cost of living, low crime rate (2.04% property crime rate), and exemplary job security, then you would get Nebraska. There is plenty of opportunity in Nebraska for property investors and especially in college towns! Nebraska is known as being moderately landlord-friendly. Here are some of the landlord-tenant laws worth paying attention to:
Security Deposits must be returned within 14 days
No Rent Control
Within being notified, repairs must be made within 14 days
24-hour notice before entering the unit
The cost of landlord insurance in Nebraska is about $1086 per year, which is on par with the national average.
In Nevada, the landlord & tenant responsibilities are comprehensive. It stipulates guidelines for rental lease agreements (12+ months in length), responsibilities for both the landlord and tenant, and detailed solutions for scenarios such as eviction or failure to follow the rental agreement. This makes Nevada is a landlord-friendly state.
However, Nevada has a dry desert climate that homes in danger of wildfires or house fires. Getting landlord insurance to mitigate your financial risk from fires is a great way to protect your investment! Check out how we can cover your home against those unexpected risks.
The cost of landlord insurance in Nevada is about $739 per year, which is significantly lower than the national average.
The rents have been increasing statewide in New Hampshire. In 2021 there has been an increase of 29%. New Hampshire is known to be a reasonably landlord-friendly state because there is no rent control, and also state does not limit specific fees. Despite this, there are somewhat strict requirements on the handling of security deposits. Landlords in New Hampshire can charge up to the greater of $100 or one month’s rent. They must provide a receipt to the tenant upon collection. It must be returned within 30 days of lease termination and also any interest. If not done correctly, the landlord will be liable to pay double the withheld sum in damages.
The cost of landlord insurance in New Hampshire is about $1291 per year, which is slightly higher than the national average.
The landlord-tenant laws favor the tenant more than the landlord in New Jersey. Despite New Jersey being more tenant-friendly, there are many opportunities as the number of renters is increasing statewide. Here are a few tips on being a landlord in New Jersey:
Rent Control Laws– Be aware of the local laws as there are rent control laws in certain regions of New Jersey.
Landlord Registration Act- requires your rental properties to be registered with the states. In some cases, there are fees.
Rent Security Deposit Act- the landlord must return the tenant’s security deposit within 30 day period after the tenant has vacated the rental property (They have returned the keys and have taken their belongings). Note: The deposit must be returned within five days if the case was flood, fire, condemnation, or evacuation.
The cost of landlord insurance in New Jersey is about $1330 per year, which is slightly higher than the national average.
Generally, housing costs are 5% lower than the national average. This makes New Mexico a great place for new investors looking to get started or experienced investors wanting to diversify their portfolios. New Mexico is a landlord-friendly state as there are no rent-control laws in place.
The security deposit must be returned with 30 days of lease termination
24-hour notice before entering the unit
Must notify tenants 30-days before rent increases
The cost of landlord insurance in New Mexico is about $1012 per year, which is on par with the national average.
New York has strict landlord-tenant laws that tend to benefit the tenant more than the landlord. There is a rent control law in place, and the eviction periods can take a long time (1-5 months). However, New York can be a lucrative rental market, and there is a high demand for rentals, with 67% of the people renting over ownership.
As a landlord in New York, it’s important to get protected by landlord insurance to prepare for the unexpected. The state is known for its competitive and expensive real estate market. Thankfully, New York doesn’t experience as many natural disasters as other states in the nation. However, getting landlord insurance will protect you from certain liabilities, such as a tenant slipping on your stairs.
The cost of landlord insurance in New York is about $1396 per year, which is slightly higher than the national average.
There is plenty of opportunities to be a landlord in North Carolina, with almost half of the housing population renting (45%). The most common natural disasters in North Carolina are:
tropical storms and hurricanes
severe storms, floods
From 1953 to 2019, there have been 65 major declared disasters in the state.
The cost of landlord insurance in North Carolina is about $909 per year, which is slightly lower than the national average.
North Dakota, without a doubt, is a landlord-friendly state with its low taxes. The oil field boom has created a surge in new renters looking for properties (in 2019, 38.67% of households were renters). With opportunity comes risk:
Floods are the highest risk for properties
North Dakota has from 19 to 35 thunderstorms a year
On average, 13 windstorms a year
The cost of landlord insurance in North Dakota is about $2173 per year, which is significantly higher than the national average.
The good news is Ohio is a landlord-friendly state. Here are helpful Tips on Being a Landlord in Ohio:
Security Deposits – Landlords in Ohio can charge as much as they like for security deposits. However, the Landlord is required to return the security deposit within the 30 day period of a tenant moving out. If the landlord fails to comply, they must give tenants a letter of explanation and a list of the deductions via mail or personally.
Eviction – If the tenant has violated their lease agreement, there is a three-day grace period in which they can amend the violation before the landlord can file an eviction.
Notice for Entering the Property – Landlords may only enter the unit without permission in the event of an emergency. Landlords must give an advanced notice 24 hours before entering the rental unit.
Rent Control – There are no rent control restrictions on landlords increasing rent. They do have to give sufficient notice. For example, for month-to-month renters, the landlord must provide notice 60-days before. Find our how much a landlord can increase rent in Ohio.
The cost of landlord insurance in Ohio is about $952 per year, which is significantly lower than the national average.
Oklahoma is considered a landlord-friendly state with laws that help protect the rights of landlords doing business there. The house prices are amongst the lowest in the country and are an excellent place for investors to start their portfolio. However, Oklahoma is situated in the “hurricane alley” and gets severe weather that poses a risk to houses. Protecting your rental properties with landlord insurance is one of the best ways to take the risk out of your investment.
The cost of landlord insurance in Oklahoma is about $762 per year, which is significantly lower than the national average.
In 2019 37.12% of households were renters in Oregon. Oregon has statewide rent control laws and has a lot of landlord-tenant laws that heavily favor the tenants. Landlord insurance may help with liability concerns and help protect in the event of a natural disaster! Oregon has had 79 federally declared disasters since 1953, making it the 10th most natural disaster-prone state.
The cost of landlord insurance in Oregon is about $839 per year, which is slightly lower than the national average.
Pennsylvania is a landlord-friendly state. With an estimated 12.8 million residents, the landlord-tenant law allows more freedom for the landlord to operate. Here are some of the laws to make PA a Landlord-friendly state:
A security deposit is not required. However, if the landlord collects a deposit, they can only charge an equivalent of two months of rent in the first year and then up to one month after the first year.
The landlord must return the deposit (all or a part of) after 30 days of the tenant vacates the property.
Rental Agreements are only required for leases that are 12 months or longer. However, it is in the best interest of both parties to have a written agreement no matter the length of the lease.
The cost of landlord insurance in Pennsylvania is about $988 per year, which is on par with the national average.
Though Rhode Island does not practice rent control and has no limits of what type of fees can be charged by the landlord, it is still a somewhat landlord-friendly state. The evictions can be lengthy in Rhode Island. Getting landlord insurance in Rhode Island is a good idea:
21 of the coastal area communities are in danger of tropical/hurricanes
Rising sea levels raise this risk
The cost of landlord insurance in Rhode Island is about $2372 per year, which is significantly higiher than the national average.
South Carolina is a great place for owning vacation rentals and particularly in the Myrtle Beach area. It’s also amongst the top ten states in the country to get hit by hurricanes. Protect your property in South Carolina against wind damage with landlord insurance!
House prices are about 15% lower than the national average making South Carolina an attractive place for landlords.
The cost of landlord insurance in South Carolina is about $1,289 per year, which is significantly higher than the national average.
South Dakota is one of the more landlord-friendly states in the nation. With no limits for landlords on rent or late fees and also no time requirement to make repairs. With a relatively low entrance barrier for new landlords, the median home price in South Dakota is $239,500. When paired with an extremely low unemployment rate, 2.8% (2021), South Dakota is an attractive market for new and veteran real estate investors! South Dakota gets a wide variety of natural disasters that range from tornadoes to ice storms! Protect your rental property investment by getting landlord insurance.
The cost of landlord insurance in South Dakota is about $1149 per year, which is more or less on par with the national average.
In 2019 33% of people rented their homes. Landlord-tenant law in Tennessee, except for requiring a rental license, favors landlords. The price of entry is low, also are the property taxes. The low costs and an economy experiencing high in-migration make Tennessee a great place to have rental properties.
Also, Tennessee is prone to natural disasters, with ice, hail, and lightning storms being the most common. See how we can cover your property! It’s a wise choice to get landlord insurance for your rental property.
The cost of landlord insurance in Tennessee is about $1026 per year, which is almost exactly the same as the national average.
Texas is a landlord-friendly state and has a high demand for rental properties. The great state of Texas also ranks number one in the nation for occurring natural disasters. Since 1950 there have been 86 significant disasters that have been declared. There is typically at least one natural disaster that is reported in the Lonestar state each year. Texas real estate is ravaged by wildfires, hurricanes, hailstorms, tornados, sinkholes, and erosion each year. Landlord Insurance helps protect your rental property from any naturally occurring disasters, as well as liability insurance and many more coverages. Get a commitment-free landlord insurance quote today for coverage as early as the next day.
We wrote an article as a free resource about being a landlord in Texas. It covers what to expect and how to prepare. We hope it helps!
The cost of landlord insurance in Texas is about $1336 per year, which is slightly higher than the national average.
Utah is a semi-landlord-friendly state with laws that preserve the rights of landlords. There are no rent control laws, the statutes for eviction are straightforward, and there is flexibility for the landlords to assign rent payments. However, the property prices are steep, and the entrance barrier is higher than in other states such as Georgia. The median house sale was $455,000 in 2021, and the cost of living is above average. As a landlord in Utah, it is essential to read the landlord-tenant laws thoroughly. Here are some highlights:
Landlords must issue 24-hour notice before entering the property
The four mandatory disclosures in Utah are lead-based paint, authorized agents, lease copy, and itemized list of damages.
The cost of landlord insurance in Utah is about $810 per year, which is slightly lower than the national average.
Though there are no state-wide rent control mandates, Vermont is a tenant-friendly state because of the extensive legislation in favor of the tenant. For example, the eviction laws:
Lease Violation or Non Payment of Rent: The landlord must give a 30-day notice to Quit, and if the tenant doesn’t meet the terms, then the landlord can pursue a formal eviction.
Illegal Activity: 14-Day Unconditional Notice to Quit and the tenant must vacate or face a formal eviction.
The cost of landlord insurance in Vermont is about $1322 per year, which is significantly higher than the national average.
In 2019, 33% of people rented over ownership in Virginia. Virginia is a reasonably landlord-friendly state. There is no rent control plus landlords have a large amount of freedom when picking tenants. The average house price is around $330,00, and the prices have been rising at a fast rate.
It’s advisable to get landlord insurance for your rental property in Virginia. Get prepared and covered for unforeseeable events that could set you back!
The cost of landlord insurance in Virginia is about $977 per year, which is slightly lower than the national average.
Despite being a more tenant-friendly state, Washington has a lot to offer for landlords. There is a high concentration of renters in Washington (close to a million). A large majority of the renters residing in Seattle. Seattle has more renters than homeowners. If you are a landlord in Washington, keep these laws in mind:
Security Deposits- Within 21 days of the tenant vacating the premises, the landlord must return the security deposit. Landlords are allowed to not require a security deposit, but if they do, then they must hold the security deposit in a separate trust account.
Rental Agreements– Must be in written form for a lease that is longer than 12 months and in leases shorter than 12 months if there was a security deposit or any non-refundable fees.
Other– The landlord must arrange for regular trash pick-up, provide working locks/ keys, and heating and hot water.
The cost of landlord insurance in Washington is about $857 per year, which is considerably lower than the national average.
West Virginia is a landlord’s paradise with landlord-tenant laws that enable landlords to conduct business on their terms. The entrance barrier is relatively low as the median house price is $114,600. Here are some landlord-tenant highlights:
Landlords can increase rent to any price at any time (no notice required).
There is no limit to what a landlord can charge as a security deposit.
Landlords can file for eviction immediately if a tenant doesn’t pay on time.
The cost of landlord insurance in West Virginia is about $1185 per year, which is considerably higher than the national average.
Wisconsin is a relatively landlord-friendly state with laws to preserve the rights of landlords. However, Wisconsin is located in “tornado alley” and is prone to natural disasters. Between the years of 1953 and 2019, Wisconsin declared 50 significant disasters. Tornados and flooding are the most prevalent threats if you are a landlord in Wisconsin thein it is in your best interest to get landlord insurance!
The cost of landlord insurance in Wisconsin is about $1098 per year, which is slightly higher than the national average.
Being a landlord in the state of Wyoming offers excellent possibilities! It is a landlord-friendly state that gives landlords plenty of recourse for late rent issues.
In Wyoming, landlords have the right to enter a tenant’s apartment without notice in the case that the tenant is more than three days behind on the rent payment.
Also, the landlord can terminate a lease after three days of a tenant not paying rent.
On average, the gross monthly rent is around $1,114.
Wyoming is the 9th lowest in the country for property taxes at a rate of 0.61%.
The cost of landlord insurance in Wyoming is about $1755 per year, which is significantly higher than the national average.