Comprehensive Guide to Landlord Insurance in Georgia
Around 35% of Georgia households are renters, making the Peach State a hotspot for building wealth through rental income. But being a landlord isn’t without risks—Georgia faces hurricanes, thunderstorms, hail, and even tornadoes. Since 1980, the state has had over 130 major weather disasters, causing $1 billion or more in losses.
Did you know that if you rent out your property, even short-term, your homeowners insurance might not cover damage? For example, if you rent your Augusta home during The Masters and a tornado hits, home insurance could deny the claim.
Homeowners insurance only covers owner-occupied homes—which is why rental properties need landlord insurance instead. Here’s what you should know about landlord insurance in Georgia.
Key takeaways
- Landlord insurance is similar to home insurance but designed for properties you rent out, not ones you live in.
- Georgia’s weather can be unpredictable—hurricanes, tropical storms, tornadoes, and hail are all risks for Georgia landlords.
- Landlord insurance in Georgia generally costs about 25% more than homeowners insurance for the same property.
- Without landlord insurance, you could pay out of pocket for major damage or legal claims.
- The right policy gives you peace of mind while protecting your rental investment.
Is landlord insurance required in Georgia?
The state of Georgia does not require landlord insurance. However, your mortgage lender may require it as a condition of your loan if you’re financing a rental property. If a covered event destroys your property, like fire, smoke, or windstorms, it’s their way of ensuring they get their money back.
Even if you own the property outright, having the right property insurance in Georgia can help protect your finances.
Homeowners insurance in Georgia only covers properties you live in. If your rental property is damaged or a tenant gets injured and sues, your homeowners insurance could deny the claim entirely.
For example, let’s say you rent out your Savannah home during the St. Patrick’s Day Parade, one of the city’s biggest events. If a guest trips on a loose step and files a lawsuit, or a storm damages your roof, you’d likely be on the hook for repairs and legal fees without landlord insurance.
Landlord insurance fills this gap by covering property damage, liability claims, and even lost rental income. Without it, one unexpected event could erase months—or even years—of rental earnings.
Not sure if you need a policy? Learn more about whether landlord insurance is right for you.
How much is landlord insurance in Georgia?
Georgians can expect to pay around 25% more for landlord insurance than they would for homeowners insurance on the same property. Since the average homeowners insurance policy in Georgia is around $2,302 per year, the average landlord insurance policy may cost roughly $2,877.50 annually (25% more).
That said, landlord insurance costs vary based on factors like the property’s location, size, age, and the coverage options you choose. Landlords in urban areas or regions prone to natural disasters typically pay more than those in rural or low-risk areas.
Here’s a breakdown of how landlord insurance costs vary by region across Georgia:
Athens landlord insurance costs
Athens, home to the University of Georgia, is a landlord-friendly city if you’re comfortable renting to students. Homeowners insurance in Athens averages around $2,287 annually, putting landlord insurance costs at around $2,859 annually. Keep in mind that renting to students may bring risks like higher property wear and tear, but the steady demand for housing makes it a profitable rental market.
Atlanta landlord insurance costs
In Atlanta, the average homeowners insurance policy is around $2,379 per year, meaning the average landlord insurance policy could cost around $2,974 annually. Urban neighborhoods like Midtown or Buckhead tend to have higher premiums due to higher property values and an increased risk of theft or vandalism.
Augusta landlord insurance costs
In Augusta, homeowners insurance averages around $2,464 annually, so landlords could expect to pay around $3,080 per year. However, properties near major events, like The Masters, may need higher liability coverage, which can increase premiums.
Helen landlord insurance costs
Helen, Georgia, a charming Bavarian-themed town, attracts thousands of tourists year-round for its festivals, picturesque scenery, and Alpine-style architecture. If you own a rental property here, homeowners insurance averages around $2,397 per year, meaning landlord insurance could cost roughly $2,996 annually (25% more). High tourism activity may also increase liability risks, so it’s important to consider additional liability coverage.
Macon landlord insurance costs
In Macon, the average homeowners insurance policy costs around $2,627 per year, meaning landlords could pay roughly $3,284 annually. Costs can depend on whether your property is in a suburban neighborhood or a higher-risk area prone to storm damage.
Savannah landlord insurance costs
Savannah homeowners insurance averages around $2,824 annually, so landlord insurance could be roughly $3,530 per year. Premiums are higher in flood-prone coastal areas, and properties in historic districts may face additional costs for rebuilding restrictions or special materials.
St. Simons Island landlord insurance costs
Saint Simons Island is home to breathtaking beaches, but homeowners insurance premiums vary widely. The average cost is around $3,365 annually, so landlord insurance could be around $4,206 per year. Coastal risks, including hurricanes and flooding, can drive up these costs.
💡Tip:
Rentals near the Golden Isles and other coastal areas often require flood insurance in addition to landlord insurance. Standard policies don’t cover flood damage, so landlords in high-risk flood zones should add coverage to protect against costly damage from hurricanes, storm surges, and rising water levels. Many areas, including Glynn County, participate in the National Flood Insurance Program (NFIP) if you can’t get flood coverage through a private insurer.
Types of Georgia landlord insurance coverage
Property insurance in Georgia comes in three main types: DP-1, DP-2, and DP-3 policies. These policies are tailored to rental properties and vary based on what they cover and how claims are paid. Here’s what you need to know about each landlord insurance coverage option:
- DP-1 (basic coverage). DP-1 is the most basic landlord policy. It covers only named perils like fire, lightning, and internal explosions. You might be able to add extra protections, like vandalism or windstorms, for an additional cost. Claims under DP-1 are paid out on an actual cash value (ACV) basis, which deducts depreciation. It’s affordable but not great if something major happens.
- DP-2 (middle coverage). DP-2 expands on DP-1 by covering additional perils like hail, burglary damage, and freezing pipes. It also includes loss of rental income, which compensates you if your property becomes unlivable after a covered event. Claims usually pay on a replacement cost basis, meaning you’ll get enough to repair or replace the damage without depreciation. DP-2 can be a good balance of cost and protection.
- DP-3 (comprehensive coverage). This is the top-tier option. It covers almost everything unless it’s specifically excluded (like earthquakes, neglect, or flooding), and it pays for full replacement costs. It also covers personal property you provide, like appliances, but only for named perils. If you want full peace of mind, DP-3 is the way to go.
Depending on which insurance company you go with, these coverages may be included in your policy or available as an add-on:
- Liability coverage—protects you if a tenant or guest is injured on the property.
- Lost rental income—covers your rent if the property is damaged and uninhabitable.
- Personal property coverage—insures items like appliances or furniture you (as the property owner) provide. It does not cover the tenant's personal property.
- Flood or windstorm coverage—a must-have in high-risk areas like Savannah, Tybee Island, Jekyll Island, Cumberland Island, or St. Simons Island.
Georgia landlord insurance coverage exclusions
Like any policy, there are exclusions—things your insurance won’t pay for—that could leave you responsible for certain costs. Here are some common exclusions landlords in Georgia should be aware of:
- Flooding. Standard landlord insurance doesn’t cover flood damage. If your rental is in a high-risk flood zone, like coastal or marshy areas near Brunswick or Savannah, a separate flood insurance policy is recommended.
- Earthquakes. Landlord insurance doesn’t cover damage caused by earth movement unless you purchase additional coverage. Some North Georgia counties like Bartow, Catoosa, Chattooga, Dade, Floyd, and Whitfield are more at risk of earthquakes than other parts of the state, although activity is rare overall.
- Wear and tear. Routine maintenance, aging roofs, or worn-out appliances aren’t covered. Landlords are responsible for keeping the property in good condition.
- Pest damage. Damage caused by termites, rodents, or other pests is typically excluded.
- Neglect or intentional damage. If you fail to maintain the property or a tenant causes intentional damage, the policy won’t cover the repairs.
How to lower your Georgia landlord insurance premium
Georgia property insurance for landlords can be expensive, but there are plenty of ways to lower your premium without sacrificing coverage. Here are some practical tips to help you save:
- Mitigate weather risks. Georgia’s weather can be unpredictable, with hurricanes, hail, and tornadoes posing major risks. Strengthen your property by adding storm shutters, upgrading to a reinforced roof, or installing a sump pump to prevent water damage. These upgrades could earn discounts from your insurer.
- Increase your deductible. Choosing a higher deductible—the amount you pay out of pocket before insurance kicks in—could lower your monthly premium. Just make sure you set aside emergency savings to cover that higher deductible if needed.
- Bundle your policies. If you own multiple rental properties or already have auto or home insurance, ask about bundling them with the same insurer. Many companies offer discounts for combining policies.
- Screen your tenants carefully. Insurers view tenants as part of the risk equation. Renting to reliable tenants with good credit and no history of evictions may reduce your liability risks and could help lower your premium.
- Install safety features. Adding security systems, smoke detectors, and fire extinguishers can reduce your premium. Properties in high-crime areas like certain Atlanta neighborhoods may particularly benefit from security upgrades.
- Ask about discounts. Many insurers offer discounts for things like having no prior claims, using electronic payments, or being a member of certain professional organizations.
- Get several quotes. Each insurance company uses a different algorithm to determine your premiums. Shopping around with at least three providers can help confirm if you’re getting the best rate quote.
Still have questions?
Interested in learning more about Georgia property insurance? Here are some frequently asked questions to help you better understand how it works and why it’s important.
Does homeowners insurance cover rental property in Georgia?
No, homeowners insurance only covers properties you live in. If you rent out your property—even part-time—your homeowners insurance may deny claims for damage or liability. That’s why landlord insurance is essential for rental properties in Georgia.
What is the average cost of renters insurance in GA?
The average renters insurance policy in Georgia costs around $334 per year, or about $28 per month, according to Insurance.com. This coverage is typically purchased by tenants and doesn’t replace the need for landlord insurance, which covers the structure and liability risks.
Does landlord insurance cover negligence in Georgia?
No, landlord insurance does not cover negligence. For example, if a tenant is injured due to unsafe conditions you failed to repair—like a broken handrail or faulty wiring—your policy could deny the claim. Regular property maintenance is crucial to prevent accidents and liability claims.
Who has the cheapest landlord insurance in Georgia?
The cheapest landlord insurance depends on your property, location, and coverage needs. It’s best to shop around and compare quotes from several insurers to find which policy is most affordable for you.
What factors influence the average insurance cost in Georgia for landlords?
Several factors affect a landlord’s average insurance in Georgia, including the property’s location, age, and size, as well as the coverage limits and deductibles you choose. Properties in high-risk areas, such as flood zones near Savannah or high-crime neighborhoods in Atlanta, typically have higher premiums. Tenant screening and the property’s condition can also influence costs.
Is Georgia a landlord-friendly state?
If you’re considering purchasing real estate, you may wonder, “Is Georgia landlord-friendly?” The answer is yes. Georgia has a Landlord-Tenant Handbook that outlines all the rules you must follow. But it’s generally favorable for landlords. For example, Georgia doesn’t have strict rent control laws, so landlords are often free to set rental rates based on market conditions. The state also allows for security deposits and late fees, provided they follow guidelines set by the state.
