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Landlord Insurance North Dakota
Last updated: May 24, 2025
"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett
Landlord insurance in North Dakota is a purpose-built coverage solution for property owners renting out homes or commercial buildings across the Peace Garden State. Whether you manage an apartment in Fargo, rent out single-family houses in Bismarck, or own investment properties in Grand Forks, landlord insurance North Dakota is indispensable for safeguarding your assets and addressing risks unique to the region.
Unlike standard homeowners insurance, landlord insurance policies in North Dakota are designed to tackle the specific hurdles faced by rental property owners, including tenant-caused damages and severe weather events that are part and parcel of the North Dakota landscape—think blizzards, windstorms, and hail.
In recent years, property owners in North Dakota have experienced a steady uptick in insurance rates, squeezing rental income margins. Our research into thousands of landlord insurance North Dakota policies shows that many landlords overpay by as much as 25%, often due to working with agents who aren’t familiar with the intricacies of landlord coverage in North Dakota.
That’s why OfferMarket Insurance was built: a specialized platform tailored for North Dakota landlords to compare quotes from over 40 top-rated insurance carriers. Our North Dakota-focused insurance professionals analyze every offer so you get the strongest coverage at the best possible price—helping landlords from Minot to Mandan save thousands every year.
What Risks Does Landlord Insurance in North Dakota Cover?
A robust landlord insurance policy in North Dakota typically includes protection from:
🏠 Property damage resulting from fire, blizzards, hailstorms, vandalism, and other regional hazards
⚖️ Liability claims if a visitor or tenant is injured on your North Dakota rental property
💸 Loss of rental income if covered events make your property unlivable
🌊 Flood insurance (purchased separately if your North Dakota property is in a flood-prone area)
Property Insurance
North Dakota landlords face weather extremes, from frigid winter blizzards to summertime hail, along with fire, theft, and vandalism. The property insurance portion of your landlord insurance North Dakota policy shields you from these perils and may also cover relocation costs if tenants must move out for repairs.
North Dakota property insurance generally comes in three main coverage forms—Basic, Broad, and Special—each responding to different “perils” (risks):
Basic Form Perils
The most economical property insurance option for North Dakota landlords, the Basic Form, covers only the core perils, such as:
🔥 Fire
🌩️ Lightning
💥 Internal explosion
Extended Coverage (EC) Perils
In North Dakota, the mnemonic WHARVES can help you recall additional perils that extend your basic coverage:
🌬️ Windstorm (including the powerful prairie winds and tornadoes North Dakota can experience)
🦹♂️ Civil commotion
🔥 Smoke (excluding fire-related smoke, but sudden damage)
🌨️ Hail (common in North Dakota’s unpredictable climate)
✈️ Aircraft
🚗 Vehicle impact
💥 Explosion
❗ Riot
For vandalism, “V&MM” stands for:
🏚️ Vandalism
🦹♂️ Malicious mischief
Broad Form Perils
Agents in North Dakota use the “BIG AFFECT” acronym for broad form perils, which build upon the basic and extended forms:
🥷 Burglary damage
🧊 Ice, sleet, snow (critical in North Dakota’s long, harsh winters)
🪟 Glass breakage
🚰 Accidental water or steam discharge
🧊 Freezing objects (especially relevant during sub-zero months)
✈️ Falling objects
⚡ Electrical current damage
🏚️ Collapse
💥 Tearing asunder
Special Form Peril
The most comprehensive coverage for North Dakota landlords is the Special Form, often called “open form” or “DP-3.” This policy insures against all direct physical losses unless specifically excluded—so review your policy exclusions carefully. Common exclusions for North Dakota include:
🌊 Flooding (requires separate flood insurance in North Dakota’s flood zones)
🌎 Earthquake (uncommon but possible; typically added via endorsement)
🤡 Intentional acts of damage
⚠️ Building code enforcement expenses
🔌 Off-site power failures
🇺🇸 Government seizure
General Liability Insurance
General liability insurance in North Dakota protects landlords against injury or property damage claims involving tenants, guests, or contractors on your rental. Standard liability limits range from $100,000 to $1,000,000 per occurrence.
If a tenant slips on an icy walkway at your Fargo rental and sues, your landlord insurance North Dakota liability coverage helps pay for medical expenses and legal defense.
Business Interruption Insurance (Loss of Rent)
North Dakota landlords face the risk of lost rental income if a property becomes uninhabitable after a disaster. Business interruption insurance built into your landlord insurance North Dakota policy can help replace lost rent, so your cash flow remains stable during repairs.
This protection is generally affordable in North Dakota, with premiums often running about $1 per $1,000 of annual rent.
Flood Insurance
With North Dakota’s proximity to the Red River, Devil’s Lake, and other flood-prone regions, dedicated flood insurance is essential for properties in FEMA-designated flood zones.
Most lenders in North Dakota require flood insurance coverage of up to $250,000, which is separate from your landlord insurance North Dakota policy. Flood insurance is usually provided through the National Flood Insurance Program (NFIP). You can assess flood risk using FEMA’s Flood Map Service.
Landlord Insurance for DSCR Loans in North Dakota
If you’re financing your North Dakota rental with a Debt Service Coverage Ratio (DSCR) loan, understanding insurance requirements is crucial. North Dakota landlords must obtain landlord insurance policies that comply with lender mandates to qualify for DSCR loans and maximize approvals.
Because premiums impact your DSCR, it’s essential to find landlord insurance North Dakota policies that are both comprehensive and competitively priced. Typical DSCR lender requirements include:
| DSCR Loan Insurance Requirement | Required? |
|---|---|
| Property Insurance | Yes |
| General Liability Insurance | Yes |
| Business Interruption Insurance | Yes |
| Mortgagee Clause | Yes |
| Lender as Additional Insured | Sometimes |
OfferMarket Insurance assists North Dakota landlords with DSCR loan insurance compliance, providing tailored quotes that meet lender guidelines and keep your costs low.
How Much Does Landlord Insurance Cost in North Dakota?
Landlord insurance pricing in North Dakota depends on several major factors:
Location in North Dakota
Insurers use regional data to set premiums. Properties near rivers—like the Red River in Fargo or Missouri River in Bismarck—may pay higher rates for flood-prone areas. Construction costs and local repair expenses also influence premiums.
Property Insurance Type
North Dakota landlords can select from Basic, Broad, and Special Form policies. Special Form coverage, while pricier, offers the most robust protection and is generally advised for rentals.
| Property Insurance Type | Cost |
|---|---|
| Basic Form | $ |
| Basic + Extended Coverage | $$ |
| Broad Form | $$ |
| Special Form | $$$$ |
Dwelling Coverage Amount
The dwelling coverage limit you choose will be the primary factor affecting your North Dakota landlord insurance premium. Insure your property for its full replacement cost to avoid penalties like coinsurance.
Given rising building costs in North Dakota, it’s vital to regularly update your coverage limits to reflect current replacement values.
| Dwelling Coverage Type | Cost |
|---|---|
| Actual Cash Value | $ |
| Functional Replacement Cost Value | $$ |
| Replacement Cost Value | $$$ |
Deductible
Opting for a higher deductible lowers your annual premium in North Dakota. Many landlords choose deductibles of $5,000 or more to balance premium savings and out-of-pocket costs.
| Deductible | Premium Cost |
|---|---|
| $1,000 | $$$$ |
| $2,500 | $$$$ |
| $5,000 | $$$ |
| $7,500 | $$ |
| $10,000 | $ |
Claim Frequency and Severity
Insurers consider your personal claim history and your property’s claims record when calculating premiums. Frequent or severe claims—such as those from frozen pipes or wind damage—may raise rates or result in restricted coverage.
Crime Score Impact
Local crime rates, especially in more urban areas such as Fargo or Bismarck, play a role in landlord insurance North Dakota premiums. Higher crime scores mean increased risk of vandalism, theft, and liability claims, leading insurers to adjust rates or impose coverage limits.
Investing in security systems or on-site management can help lower your premiums, even if crime scores don’t always reflect these improvements.
Property Condition and Maintenance
Properties in good repair typically enjoy lower insurance premiums. North Dakota landlords should focus on updating plumbing and heating systems to prevent winter-related issues like pipe bursts and on keeping mold at bay during the spring melt.
Older buildings or those with deferred maintenance are likely to face higher premiums. Keep records of regular upkeep and improvements, as these can positively impact your policy terms.
How to Protect Your Rental Property in North Dakota
While landlord insurance North Dakota is vital for risk management, proactive steps can provide extra protection:
Tenant Screening
Whether you own rentals in Fargo’s competitive market or smaller towns like Jamestown, thorough tenant screening is crucial. Conduct background and credit checks on all adult applicants. Set clear qualification standards for credit and rental history. If making exceptions, consider higher security deposits or co-signers with strong financials.
Regular Maintenance
North Dakota’s ever-changing weather demands consistent maintenance. Inspect your properties quarterly to spot problems early—like roof leaks, foundation cracks, or insulation failures. Document all repairs and share maintenance logs with your insurer to qualify for possible discounts.
Tenant Maintenance Education
Empower your tenants with knowledge—teach them about simple tasks like changing furnace filters, how to locate the main water shutoff, and dripping faucets during deep freezes to avoid water damage.
DP-3 Insurance in North Dakota
DP-3, or Special Form, policies are the gold standard for North Dakota rental properties. These policies pay out claims based on replacement cost and cover most physical damages, excluding only what’s specifically listed in your policy.
What is Coinsurance?
Coinsurance clauses penalize North Dakota landlords who underinsure their properties—usually when coverage falls below 80% of replacement cost. If you’re underinsured, you’ll have to pay a share of the claim beyond your deductible.
Coinsurance formula
(Insurance Carried ÷ Insurance Required) × Loss = Claim Payment – Deductible
If your North Dakota rental’s replacement cost is $250,000 but you’re only insured for $125,000, and you have a $5,000 deductible, a $50,000 loss would be paid as:
($125,000 ÷ $250,000) × $50,000 = $25,000 – $5,000 = $20,000 from your insurer.
You’d pay the remaining $30,000—illustrating why full replacement cost coverage is so important.
Landlord Insurance Markets in North Dakota
Wherever your rental property is located in North Dakota—whether it’s a bustling part of Fargo, a peaceful spot in Dickinson, or a college town like Grand Forks—we connect you with specialized landlord insurance tailored to your needs.
Best Landlord Insurance in North Dakota
Landlords in North Dakota have a range of choices when picking insurance. The ideal policy should include:
- Comprehensive property insurance designed for North Dakota’s weather and risks
- General liability coverage protecting against tenant and visitor injuries
- Business interruption insurance to protect rental income
- Flood insurance if your property is in a flood zone
Partnering with an agency that specializes in landlord insurance for North Dakota and has access to multiple carriers is the best way to secure quality coverage at the most competitive price. Get your landlord insurance quote with OfferMarket Insurance today!
Landlord Insurance Guidelines for North Dakota DSCR Loans
Below are guidelines reflecting best practices for landlord insurance in North Dakota to meet DSCR lender requirements:
General Liability Coverage
| General Liability Insurance | |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | - $500,000 per occurrence (minimum is $100,000) - $1,000,000 in the aggregate |
| Deductible | $1,000 |
| Coverage Details | Occurrence basis for losses (not claims-made) |
| Cancellation | 30-day notice |
| Lender's Designation | Additional Insured |
Business Interruption Insurance
| Business Interruption Insurance | |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | One year of effective gross rental revenue |
| Coverage Details | Provision for Actual Loss Sustained basis is acceptable |
| Cancellation | 30-day notice |
| Lender's Designation | Mortgagee |
Flood Insurance
| Flood Insurance | |
|---|---|
| Mandatory | If in a flood zone (must obtain Flood Zone Determination) |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | The greater of $250,000 or the loan balance |
| Cancellation | 30-day notice |
| Lender's Designation | Mortgagee |
Additional Details for North Dakota Landlord Insurance
| Detail | Information |
|---|---|
| Mortgagee Clause | OfferMarket Capital LLC ISAOA/ATIMA 627 S Hanover St Baltimore, MD 21230 |
| Condos and PUDs in North Dakota | Blanket policies allowed if individual units are covered. Associations must maintain all-risk coverage for common areas and equipment at 100% replacement cost. |
| Instructions | Use ACORD forms for compliance. Submit insurance certificates, invoices, or paid receipts at least 24 hours before closing. Final policy documents must be submitted within 60 days of closing. Notify carriers if the property becomes vacant and obtain a vacancy permit if needed. |
Frequently Asked Questions About Landlord Insurance in North Dakota
How does OfferMarket Insurance work for North Dakota landlords?
OfferMarket Insurance is a platform built for landlord insurance North Dakota property owners need. We compare quotes from multiple carriers, ensuring policies meet your criteria and lender requirements. Our North Dakota-focused experts review every quote so you get the best protection at the best price.
Do I need a Builders Risk Policy in North Dakota?
Builders Risk insurance isn’t included in standard landlord insurance North Dakota policies. You only need this coverage if you are building, renovating, or rehabbing a rental property. It covers your property and materials during construction.
Can I use Functional Replacement Cost instead of Replacement Cost Value for my North Dakota rental?
This depends on your lender’s requirements in North Dakota. Many lenders will accept Functional Replacement Cost, but some insist on full Replacement Cost Value based on your appraisal.
Why does my North Dakota lender require to be an Additional Insured?
Some DSCR lenders in North Dakota require this. Adding the lender as Additional Insured extends liability coverage to the lender, while the Mortgagee Clause covers their property rights.
Can I use my preferred insurance agent for landlord insurance in North Dakota?
Yes, as long as your agent understands landlord insurance North Dakota policies and requirements. Agents who only focus on personal lines may lack experience with local landlord insurance needs, which can cause delays.
Can I pay for landlord insurance on the HUD-1 or ALTA settlement statement in North?
DSCR loans in North Dakota usually require landlord insurance premiums to be paid in full at closing—either on the settlement statement or directly via your agent.
Can I escrow my landlord insurance premium in North Dakota?
Many lenders in North Dakota require monthly escrow payments for landlord insurance to guarantee continuous coverage.
Can I get a refund if I cancel my North Dakota landlord insurance policy?
Yes, insurers in North Dakota must refund unearned premiums on a pro-rated basis. Always line up replacement coverage before canceling to prevent gaps.
What is an AM Best Rating?
AM Best rates the financial strength of insurance companies. For landlord insurance in North Dakota, stick with carriers rated A- VIII or higher for reliability.
What is Builders Risk Insurance in North Dakota?
Builders Risk insurance protects North Dakota properties and materials during construction or major renovations. It shields you from fire, wind, theft, and vandalism until construction ends or the property is occupied.
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