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Landlord Insurance Illinois

You deserve the best coverage at the lowest possible price as you protect and grow your rental property portfolio in Illinois.

What is landlord insurance?

Landlord insurance is a type of homeowners insurance designed specifically for rental properties. It's a critical component of your risk management framework and a requirement if you are financing your property with a DSCR loan.

A landlord insurance policy is a bundle of the following coverages:

  • Property insurance: protection for physical damage to your rental property
  • General liability insurance: protection for accidents that may happen at your rental property
  • Loss of rent insurance: commonly referred to as business interruption insurance, loss of rent coverage will pay you what your property is leased for in the event a claim for damage to the property causes your tenants to move out and rental income to be lost.

Landlord insurance Chicago

Depending on where your property is located in Chicago, there are coverages that you may want to include:

  • Theft, vandalism and malicious mischief: some landlords choose to opt out of this coverage to lower their premium but it may be well worth it depending on the crime score and trends in your immediate location.
  • Sewer backup: since your property is connected to the City of Chicago's water/sewer utilities, you may want to protect yourself from the risk that sewage or water backs up into and floods the property.

Insurance premiums may be higher in certain parts of Chicago depending on a host of location-specific data points including:

  • crime score
  • underwriting performance
  • claims history
  • property values

How much does landlord insurance cost in Illinois?

Landlord insurance in Illinois is considered moderate and stable. Insurance companies have increased their premiums in response to inflation of labor costs, material costs and home prices because this has increased replacement cost in the event of a claim.

Insurance for Illinois DSCR Loan

DSCR lenders in Illinois follow similar national guidelines for landlord insurance coverage. Here are the min and max coverage requirements:

Minimum Coverage Maximum Coverage
Dwelling (property) loan amount replacement cost
General liability $100,000 per occurrence $1,000,000 per occurrence / $2,000,000 in the aggregate
Loss of rent 6 months rent 12 months actual rent

Depending on which lender you are working with, your insurance premium may vary considerably, especially if you are required to cary full replacement cost for your dwelling coverage.

Where to buy landlord insurance for Illinois rental property

OfferMarket Insurance would love to provide you with the best coverage at the lowest possible price. Take a moment to request a quote and a member of our team will be happy to assist you!

Fix and Flip Insurance Illinois

Did you know that we also specialize in fix and flip insurance? We serve a fast-growing community of BRRR investors and flippers in Chicago and throughout Illinois and we would love to help you save time and money on your next fix and flip builders risk policy!

Resources for Illinois Real Estate Investors