If you own a property and rent it to others, Farmers offers an insurance plan that meets the real-world needs of landlords today. That's what sets our program apart - we specialize in helping landlords like you get the most value for your money.

We aren't the only company selling landlord and rental property insurance today. That's why we're committed to doing a better job than the competition. And with Farmers, you have access to the nation's most experienced team of insurance experts.

Landlord/Rental Property Insurance Coverage

Broad Eligibility
We sell landlord and rental insurance policies. The following types of properties are eligible for our program:

• Multiple location landlord properties (including limited license corporations and corporations)
• Duplexes, triplexes and quads
• Converted Victorians
• Row homes
• Older and lower-value homes
• Homes with minimal cosmetic conditions
• Vacant homes
• Properties under renovation
• Fixer-uppers
• Vacation Rental homes – in most states

Property Coverage

Farmers provides you with the flexibility to tailor the policy according to your needs, including broad coverage under a Comprehensive policy, or a more limited coverage under our named peril policy offering. Under both policies you will receive these common coverages. Our landlord policy provides coverage on a comprehensive or named peril basis, including coverage for:

• Fire
• Explosion
• Lightning
• Windstorm*
• Hail damage*

Coverage for Vacant Properties

If you purchase a home to renovate and rent out, or if you're between tenants and the home is temporarily vacant, we have coverage for vacant properties. We offer up to three years of coverage for vacant properties, and your policy can be cancelled at any time with a pro-rated premium return (subject to minimum earned premium).

Coverage for Vacation Rental Properties

We also accept Vacation Rental homes in most states. Vacation Rental is defined as a dwelling which is non-owner-occupied and rented to others for temporary habitational or vacation purposes, not to exceed five consecutive months by one tenant.

Settlement Methods

Your settlement method depends on which Farmers policy you choose and whether or not you purchase any optional endorsements.

• Actual Cash Value: An ACV settlement is the cost to replace or repair you damaged property, with a deduction to reflect the age and condition of the damaged property.
• Replacement Cost: our policy with Replacement Cost settlement reflects the cost to repair or replace damaged items without depreciation.
• Agreed Loss Settlement: An Agreed Loss Settlement means that in the case of a covered total loss to the home, your settlement will be the Amount of Insurance listed on your Declarations Page.
• Extended Replacement Cost: For a covered total loss, if the cost to replace the home is more than the Amount of Insurance, up to an additional 25% of the Amount of Insurance on the home is available.

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Features and Discounts

Policy discounts vary by state and chances are one or more will apply to your policy. Some examples of what may be available are discounts for masonry construction, customers 50 years of age or older, and properties which have central fire and burglar alarms. Please contact a Farmers agent to see what specific discounts are available in your area. Higher deductibles can help lower the cost of your premium and flexible payment plans help you keep your monthly budgeting on track. Together they can help you keep you premium payment affordable.

Availability

Farmers' landlord programs are offered in many, but not all states at this time. Programs and coverages can vary among states. To qualify for coverage, homes must meet state-specific eligibility guidelines. Please contact a Farmers agent to receive full details.

What to Look For in a Landlord and Rental Home Insurance Policy

For the most security, here are some things to take into consideration when choosing an insurance policy for a vacant home:

Not all insurance policies are the same
In spite of what many people think, not all insurance policies are the same. Coverages and methods of settling your claims can be drastically different from one insurance policy to another. Purchasing insurance based only on price may save you a few dollars up front, but cost much more at claim time.

Know what your policy covers
Determine what you want your policy to do for you in the event of a claim. Landlords who want minimal coverage to protect their property from major causes of loss, such as fire, wind or explosion, should consider a named peril policy. A named peril policy actually names the types of losses that will be covered in the policy.

For landlords who want the broadest coverage available, a comprehensive policy is the answer. A comprehensive policy covers all types of accidental losses, except those that are specifically excluded in your policy.

Besides the base coverage within your policy, you will need to decide what optional coverages to include. These can include but are not limited to: liability, loss of rents, other structures, theft, personal property, earthquake, and vandalism and malicious mischief (sometimes included in the policy).

Know your loss settlement method
There are two common methods of loss settlement. Actual Cash Value settlement pays only for the current value of your property, which is the cost of replacement minus depreciation based on age and wear, up to the limit in the policy. Replacement Cost settlement pays you the amount needed to replace your property, without deduction for depreciation, with new property of like kind and quality, subject to any applicable deductibles and coverage limits. (Note: With Replacement Cost, you must actually replace the property to be awarded a replacement cost settlement. If you do not, or until you do, your claim payment would be based on an actual cash value basis.)

A policy with Actual Cash Value settlement, as you might expect, will have a lower premium. In the event of a claim, however, the difference between the two can add up to thousands of dollars. The choice is yours. are you willing to pay more insurance premium, knowing that if you don't you would receive the actual cash value of your home if it were totally damaged?

And be aware that in the event of a partial loss, there may be a depreciation charge applied to your settlement.

There are additional ways to reduce your premium
Besides some of the options we have already talked about that can save you money - named peril vs. comprehensive and Actual Cash Value vs. Replacement Cost - there are other ways to help reduce your premium. Check out the deductible options that the insurance company offers. Some companies offer generous discounts for a higher deductible.

Check to see if your insurance company offers other discounts, such as discounts for masonry construction.

It's a good idea to review your policy every year
Review your policy each year to make sure it is still providing you with the coverage you want. Values of properties can fluctuate each year due to your improvements or housing market conditions. Make sure your coverage amounts are still adequate for your property.

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