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Landlord Insurance North Carolina

Last updated: December 5, 2023

North Carolina Landlord Insurance

Landlord insurance is a bundle of property and casualty insurance designed to protect rental property owners, their rental property, their tenants and contractors. Choosing the right landlord insurance policy can present a difficult decision balancing protection and cost. The purpose of this article is to help you understand risks associated with rental property ownership, and help you implement insurance coverage that protects your property, your business and your cash flow.

Before we go any further, let's make it clear that landlord insurance, just like any other form of insurance, is a commodity. There are many carriers that offer a specialized form of homeowners insurance that we call "landlord insurance". These carriers are actively serving a healthy market in North Carolina. So, to be clear, you have choices. There are many agencies that can provide you with landlord insurance for your North Carolina rental property, and you probably have a million other priorities competing for the the headspace that the act of shopping for landlord insurance can consume.

Therefore, the best landlord insurance North Carolina real estate investors can access comes down to the following factors:

  • risk tolerance
  • lender guidelines

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 North Carolina?

Landlord insurance in North Carolina is considered moderately priced 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 North Carolina DSCR Loan

DSCR lenders in North Carolina 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 North Carolina 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 North Carolina

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

Resources for North Carolina Real Estate Investors