Professional services
Landlord Insurance Calculator
Works landlord insurance cost, where a homeowners policy will not respond to a rented property.
Result
An estimating tool, not insurance advice and not a quote. Underwriting sets real premiums on factors no calculator sees. What cover is appropriate is a question for a licensed broker. A landlord policy is not a homeowners policy: it covers the structure, the landlord's liability and lost rent, but not a tenant's possessions. Requiring tenants to carry renters insurance is standard practice and protects both parties. Short-term letting usually voids a standard landlord policy and needs a specific endorsement.
Get a Free Business AuditHow the calculation works
Building coverage at the rate for construction, location and occupancy, plus liability, loss of rent cover and any contents the landlord provides, with the deductible chosen, giving annual and monthly cost per property. Rental occupancy is rated differently from owner occupancy, which is why a homeowners policy does not transfer.
What moves the number
- Rebuild cost of the building.
- Loss of rent cover and its indemnity period.
- Liability limit.
- Whether the property is furnished or has periods vacant.
Where this one goes wrong
Continuing to carry a homeowners policy on a property that is now rented risks a declined claim, because the policy was underwritten for owner occupancy and the change is material. Tell the insurer. Vacancy is the other condition worth knowing, since most policies restrict or exclude cover after a property has been unoccupied beyond a stated period, which catches landlords between tenancies or during renovation precisely when the property is most vulnerable.
Before you quote
- Switch to a landlord policy rather than keeping homeowners cover.
- Check the vacancy clause before a property sits empty.
- Include loss of rent cover with a realistic indemnity period.
Where the rules come from
Questions
About this calculator
Can I keep my homeowners policy on a rental?
Not safely. The policy was underwritten for owner occupancy and letting the property is a material change, which risks a declined claim. Telling the insurer and moving to a landlord policy is the straightforward answer.
What is a vacancy clause?
A condition restricting or excluding cover once a property has been unoccupied beyond a stated period. It catches landlords between tenancies or during renovation, which is exactly when a property is most vulnerable, so it is worth knowing the period in advance.
Is loss of rent cover worth having?
Where the property's income matters to the owner's finances, yes, since a serious loss takes the property out of use for months. The detail to check is the indemnity period, because rebuilding and reletting routinely takes longer than the period chosen.
The formula
premium = dwelling cover / 1000 x rate + loss of rent cover + liability, less deductible credit
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How to use this calculator
- Rebuild cost ($). Enter your own figure; the page starts at $320,000.
- Monthly rent ($). Enter your own figure; the page starts at $2,400.
- Months of rent to cover. Enter your own figure; the page starts at 12.
- Liability limit ($). Enter your own figure; the page starts at $500,000.
- Deductible ($). Enter your own figure; the page starts at $2,500.
- Rate per $1,000 of dwelling cover. Enter your own figure; the page starts at 5.2.
The result updates as you type, so you can try a figure, see what it does to estimated annual premium, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Rebuild cost | $320,000 |
| Monthly rent | $2,400 |
| Months of rent to cover | 12 |
| Liability limit | $500,000 |
| Deductible | $2,500 |
| Rate per $1,000 of dwelling cover | 5.2 |
What comes out
| Result | Value |
|---|---|
| Estimated annual premium main result | $1,771 |
| Loss of rent cover | $28,800 |
| Premium as a share of annual rent | 6.15% |
| Per month | $147.62 |
| Rent left after the premium | $27,029 |
About $1,771 a year, which is 6.15% of the rent. That includes $28,800 of loss of rent cover, the part that matters if a fire makes the property uninhabitable for months.
How sensitive the answer is
Holding everything else steady and changing only rebuild cost, this is what happens to estimated annual premium. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Rebuild cost ($) | Estimated annual premium |
|---|---|
| $160,000 | $1,056 |
| $240,000 | $1,414 |
| $320,000 example above | $1,771 |
| $480,000 | $2,487 |
| $640,000 | $3,202 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Rebuild cost ($)
- A money amount, starting at $320,000.
- Monthly rent ($)
- A money amount, starting at $2,400.
- Months of rent to cover
- A number, between 0 and 36, starting at 12.
- Liability limit ($)
- A money amount, starting at $500,000.
- Deductible ($)
- A money amount, starting at $2,500.
- Rate per $1,000 of dwelling cover
- A number, between 0 and 30, starting at 5.2.
What the results tell you
| Result | What it is |
|---|---|
| Estimated annual premium | The headline result. A money figure. |
| Loss of rent cover | A money figure. |
| Premium as a share of annual rent | A percentage. |
| Per month | A money figure. |
| Rent left after the premium | A money figure. |
Keep going
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