Insurance for Rent-by-the-Room Properties
Multi-tenant or rooming houses present unique insurance challenges that many standard insurance providers aren't equipped to address. With each bedroom leased separately and tenants sharing common living spaces, coliving rental properties face increased property and liability exposures that often make appropriate coverage difficult to secure.
Protect your rent-by-the-room investments with NREIG's specialized property and liability package designed for shared housing.
Submit your property information using our online proposal request to receive a custom proposal. An agent will reach out to you to go over your options and help you choose the best coverage for your specific situation.
Start a proposal request to get your rent-by-the-room insurance solutions today!
What does Rent-by-the-Room Insurance cover?
When renting out a coliving investment property, dwelling coverage protects the structure against direct physical damage, such as:
- Fire
- Lightning
- Windstorm and Hail
- Vandalism*
- Named Windstorm and more
Choose between Basic and Special** form coverage when discussing insurance options with your agent.
Liability Insurance for Rent-by-the-Room Properties
Premises Liability to protect you, the investor, from claims that happen at your investment property.***
- Loss examples include slip and fall accidents and carbon monoxide incidents
Our Premises Liability Insurance options for co-living properties start as low as $15 per tenant, per month and come with $1,000,000 per occurrence, $2,000,000 aggregate limits.
Tenant Liability for tenant-negligent property losses.
- Covered causes of loss include Fire, Explosion, and Smoke
- $60,000 per location limit with a $500 deductible
Optional Add-On Coverages
- Contents Coverage – for landlord-owned furnishings provided within the property
- Loss of Rents – for lost rental income after a covered loss has made the property uninhabitable
Coverage is not available for owner-occupied properties, including homes where the owner resides on-site while renting individual rooms. The product is only available for single family properties.
Locations in California, Colorado, Connecticut, Indiana, Louisiana, New York, or Oklahoma; within the cities of Seattle, Detroit, Houston, Chicago, Miami, and Philadelphia; or within the following counties are not eligible: Collin, Dallas, Denton, Galveston, Fort Bend, Harris, Lubbock, Rockwall, and Tarrant Counties in Texas, and Dorchester, Saint Mary’s, Somerset, and Worcester Counties in Maryland.
*Sublimits apply. | **Excludes theft. | ***Excludes canine liability.
What level of shared housing property insurance do I need?
Rent-by-the-Room Property Insurance provides coverage in the event of a loss at the property. The amount of coverage will depend upon requirements from your lender, your exit strategy in the event of a total loss, and your appetite for risk. After you request a proposal, one of our agents will contact you to discuss how much coverage you need as each situation is unique. You can request a proposal or call 888.741.8454 to discuss your proposal with one of our licensed insurance professionals.
How much does Rent-by-the-Room Insurance cost?
Insurance costs vary based on coverages you choose to carry, deductible, where your property is located, and the size of your portfolio. Because rent-by-the-room properties typically have a different risk profile than traditional rentals, premiums are generally priced to reflect those unique exposures. With NREIG, you can insure your rent-by-the-room property with no coinsurance at $75 per square foot to obtain Actual Cash Value coverage and $120 per square foot for Replacement Cost coverage.
What deductible is right for a coliving rental?
Your property deductible is the amount that is withheld from your insurance payout for a claim. You don't need to pay the deductible out-of-pocket upfront for your claim to be processed. Instead, the deductible is subtracted from the total payout amount. When deciding on a property deductible, think about the minimum claim you would have to turn in before it harms your business and do as much as double it. If you would never file a $1,000 claim, don't carry a $500 deductible. Remember, the lower your property deductible, the higher your rate. Our premises liability insurance has no deductible.
Why choose us when insuring your rent-by-the-room?
Ease of Use
Insure your entire investment portfolio on one monthly schedule.
Pay Monthly
Set up auto pay and pay for coverage monthly as-you-go.
Leading Carriers
All coverage underwritten by AM Best “A-” or better rated carriers.
Nationwide coverage
Insure your investment portfolio in one place with coverage across 48 states.
Add more coverage to your rental property and liability insurance
With National Real Estate Insurance Group, you can add extra coverage options to your log cabin insurance. After you request a proposal, an agent will contact you to discuss your proposal and coverage options to limit your exposure. We have products ranging from flood to equipment breakdown to additional liability limit options.
Want to learn more about insuring coliving properties?
Read one of our articles about insuring rent-by-the-room investment properties or go to our Resource Center to learn more about different insurance topics.
Insurance for Investment Properties Rented by Room
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Need to speak to an agent?
Please give us a call at 888.741.8454 to speak to a licensed insurance professional. If you would like to discuss your specific location, please request an insurance proposal and one of our agents will contact you shortly.