Why Insurance Companies Ask So Many Questions Before Quoting Landlord Insurance

The landlord insurance market has been tough for years. Various external forces—from higher construction labor and materials to more frequent and severe natural disasters—have driven up insurance premiums. Not surprisingly, many landlords are shopping for insurance deals.

At City Building Owners Insurance, we’re happy to provide policy reviews and comparative landlord insurance quotes at no charge—a no-lose proposition for building owners. We either find a better policy and/or price, or we confirm that they already have the best insurance for their situation. To do our job right—and to make sure building owners get accurate quotes—we ask questions. A lot of questions.

The Problem with Fast Landlord Insurance Quotes

Sometimes people get impatient. We start asking basic questions about the property, and some property owners tell us they don’t want to answer questions—they “just want a quote.” Requesting an insurance quote without discussing the specifics of your property is like scheduling a surgery without a physical examination.

While some websites might provide “instant insurance quotes,” these prices are subject to verification of certain assumptions about the property. (For instance, a clean claims history and no violations.) More frequently, the online quote process starts with a short, easy form that leads to an in-depth conversation with an insurance professional.

Consider this process an opportunity instead of an inconvenience. The attention to detail shown by your prospective insurance partner will offer cues about the service you can expect if you buy a policy. Someone who takes the time to understand your property and risk exposures will likely prove a valuable ally if you ever need to file a claim. At the very least, a detailed discussion about your rental properties could help you identify opportunities for future savings.

What Happens if an Insurance Policy Is Based on Incorrect Information?

Insurance companies use the information collected during the quote process to evaluate risk and determine appropriate coverage. If important details about a property are incomplete or inaccurate, problems can arise later—often during inspections or claims.

For example, undisclosed violations, outdated building systems—a common issue in older New York City buildings—or incorrect replacement cost estimates may affect pricing, coverage terms, or even policy eligibility. In some cases, landlords discover after a loss that their building was underinsured or that certain risks were not properly covered.

That’s why thorough insurance reviews matter. A detailed underwriting process helps ensure your policy accurately reflects your property and reduces the likelihood of costly surprises later.

Key Questions for Quoting Landlord Insurance

If you’re shopping for landlord insurance, companies will use questions like these to evaluate building condition, liability exposure, replacement costs, and overall property risk before issuing coverage:

• What is the replacement value of your property? (If your property is destroyed, what will it cost to rebuild?)
• What is your current or projected rent roll?
• What personal property do you have in the building? (Including, for example, washers/dryers provided for tenant use)
• Do you live in the building?
• What safety and security systems are installed? (You’ll need to provide proof.)
• How many rental units are in the building?
• How old is the building?
• What condition is the building in, and what materials were used in its construction?
• How close is the building to natural risks, such as areas prone to floods?
• Do you allow tenants to smoke in their units or in common areas?
• Do you allow short-term rentals?
• Does the property have any open violations?
• How many insurance claims have you filed in the past three to five years?
• Do you have commercial tenants? If so, what kind?

In addition, your insurer will look at other factors, such as crime rates and changes in area property values. You’ll likely also have a property inspection.

Other Factors that Affect Landlord Insurance Premiums

The insurance industry is complicated, and landlord insurance is no exception. When requesting a competitive quote for landlord insurance, you’ll want a policy that offers both good value and the right protection. Consider the following:

• Insurance deductible. The deductible is the amount you’re required to pay out of pocket before your policy covers any costs. Like other types of insurance, the higher the deductible, the lower the premium. Think about how much you can cover before filing a claim. Raising the deductible and self-insuring smaller claims usually more than pays for itself in savings.
• Bundling discounts. Note that some insurance companies will offer discounts if you have multiple policies with them, such as bundling homeowners, landlords and auto insurance or insuring multiple properties with a master policy.
• Liability coverage. How much liability insurance should you carry? Again, a good broker can help. More is better. Even if someone is injured in a tenant’s apartment and sues the tenant, nothing will prevent that person from suing you as well.
• Risk management. Insurance premiums reflect the level of risk taken by the insurance companies. Demonstrating that you prioritize safety and security and maintain your property well will help you qualify for the best available rates. Working with a partner like City Building Owners Insurance can help you identify opportunities to manage your risks and improve your property’s risk profile.

City Building Owners Insurance: Your Landlord Insurance Advocate

Since 1976, City Building Owners Insurance has helped small property owners throughout the Greater New York City area find coverage tailored to their buildings, tenants, and operational risks. In today’s insurance market, a thorough review matters more than ever.

Our team works with landlords to identify potential coverage gaps, explain underwriting requirements, and help ensure policies accurately reflect t he realities of the property being insured.

Request a free, no-obligation landlord insurance review from our risk management specialists.