Steadily Review 2022: Do You Need Landlord Insurance?

Insurance on your rental unit is pretty much non-negotiable. But what type of insurance? A regular homeowners insurance policy?

Did you know there is actually something called landlord insurance?

This type of insurance protects your income-producing property from damage or destruction. It also safeguards you from being sued by tenants.

Let’s talk about Steadily Landlord Insurance. They are pretty much the only company dedicated to this type of insurance. It is an option we recommend, but it might not be the best solution for everyone. By the end of this post, you’ll hopefully know if Steadily is the right landlord insurance policy for your needs.

What is Landlord Insurance?

Before we get into the nitty-gritty of Steadily Landlord Insurance, let’s first ensure you understand what landlord insurance is and why you need it. (You can skip this part if you know landlord insurance.)

Landlord insurance is a type of property insurance that protects landlords from financial losses that could result from damage to their rental property, theft, or liability claims made by tenants.

While a regular home insurance policy might cover damage to a personal residence, it likely won’t provide the type of coverage you need for an income-producing property. That’s where landlord insurance comes in, as it’s specifically designed to protect rental properties and the landlords who own them.

While it’s not a legal requirement to have one of these policies, it can certainly be a good idea to have one as a risk-mitigating strategy — it can help protect you from unforeseen costs related to tenants.

For example, landlord insurance will protect you from losses in rental income if your property becomes unsuitable for renting out due to covered damages. This can be extremely important if you rely on rental income to cover your mortgage payments or other associated costs.

An Overview of Steadily Landlord Insurance

Steadily Landlord Insurance was founded in 2017 and incorporated in 2019 when one of its founders bought a small rental property in Chicago but couldn’t find a simple-to-understand, fast, affordable landlord insurance.

This is a positive signal as it means the team behind Steadily knows the pain points of property owners seeking landlord insurance. So, they decided to start their company to provide quality coverage at an affordable price.

Steadily’s unique online self-serve model brings experts to you to help you get customized coverage for your needs with minimal hassle.

They also serve all 50 states, which is incredible considering the broad spectrum of insurance costs.

Steadily Insurance Screenshot (1)

Steadily’s Stability as a Company?

One issue users might find worrying is that Steadily is a relatively new firm that hasn’t had a history with massive concurrent claims from significant economic shifts. In other words, the company’s financials have not been stress tested yet — unlike financial institutions that survived the 2007 Global Financial Crisis.

They serve over 17 million rental property owners, with thousands of positive reviews online. But I question the authenticity of these reviews after seeing repeat reviews, with the exact same words, from multiple users.

In any case, the company has raised decent money to support its financial robustness and continuing operations. Through two funding rounds, Steadily has managed to raise $3.8 million in 2020 and another $27.8 million in 2021. The company is undoubtedly one of the fastest-growing insurance firms in the U.S..

Types of Properties

Steadily offers coverage for a wide range of property types, including:

  • Single-family homes
  • Multi-family homes
  • Vacant or restoration
  • Condominium units
  • Manufactured homes
  • Apartment buildings

The company also covers Airbnbs, VRBOs, and other short-term rental properties. Remember that only paying visitors will be covered under landlord insurance stipulations. Family and friends will not be covered under this type of insurance.

Steadily Insurance Types of Properties (1)

Does Steadily Cover Your Needs?

An insurance policy is only useful if it can cover the events you’d like protection from. Consider the following list and see if these are instances you want to be covered. (You can also find this list on Steadily’s website.)

I’ve included a brief description for each because Steadily’s coverage, assuming you’re comfortable with having them as an insurance company, ultimately determines if they offer a product that meets your needs.

Fire

While fires are now few and far between, they can basically lead to the total destruction of your property. If a fire starts in your rental unit, Steadily will cover the costs to repair or rebuild the damaged portion of your property.

Water

Water damage is one of the most common — and expensive — types of property damage. If a pipe bursts or your roof leaks, Steadily will cover the costs of repairs.

Windstorms, Hail, and Lightning

Wind and hail are common causes of property damage in particular areas. Again, Steadily is available across all 50 states, and property owners in areas where windstorms, hail, and lightning are frequent will appreciate having these acts of God covered.

Lawsuits and Injury

Cover the cost of defending yourself, or settling claims from tenants and their guests, if someone is injured on your property. We all do our best to keep our properties safe from injury, but things happen, and it’s good to have lawsuits covered. If a tenant or visitor is injured on your property, Steadily will cover their medical bills.

Riot and Civil Commotion

Riot coverage will pay to fix your property, so there’s less worrying about looters and protestors if a violent protest breaks out.

Theft and Vandalism

If your property is vandalized or burglarized, Steadily will cover the cost of repairs on broken glass, graffiti removal, and stolen or damaged property. This coverage is also known as malicious mischief coverage.

Bonus Coverages

Many policies will include additional coverages like explosions, damage caused by vehicles, volcanic eruptions, slander, mental anguish, and beyond. I encourage you to check out Steadily’s umbrella coverages to learn more.

As you can see, Steadily offers a wide range of coverage for landlords. If something happens to your property, you can expect Steadilty to pay for repairs or replacement costs.

But not all events apply to everyone. When it comes to insurance, you can either get a policy with comprehensive coverage or one with limited protection for a lower price. Steadily can customize. You can contact an agent to discuss your coverage needs and budget.

Steadily Insurance for Landlords What They Cover (1)

What is Not Covered by Steadily Landlord Insurance?

There are a few things that Steadily does not cover. These include:

Tenant Property

While Steadily will protect your furnished items, it will not protect a tenant’s. Landlord insurance will not cover tenant furniture, electronics, and vehicles. Your tenant will still need to get renters insurance to protect their items.

Mechanical Repairs and Replacements

Steadily will not protect mechanical systems. For example, if your dishwasher breaks or your furnace needs to be replaced, Steadily will not cover the cost of repairs or replacement. The company will also not repair or replace items due to general wear and tear or lack of maintenance.

Damages Caused by the Property Owner

Say you have your property renovated and it results in damages (e.g., wall or plumbing), Steadily will not cover the costs of fixing it.

Weighing the Pros and Cons

Like all alternatives in the market, Steadily has its pros and cons. Whether or not you choose to get your landlord policy from them comes down to personal preference. Hopefully, this quick list of advantages and disadvantages can help you decide.

Pros

  • Focus on landlord insurance: Steadily focuses on insurance for people who own rental properties, meaning they have a lot of experience and expertise in this area.
  • Customizable plans: You can customize your Steadily insurance plan to fit your needs and budget.
  • Coverage for short-term rentals: If you own a property that you occasionally rent out on Airbnb, Vrbo, or other short-term rental platforms, Steadily will gladly cover your property.
  • Easy application process: Unlike most big-name insurance companies, Steadily’s application process can be done online without talking to anyone. Of course, if you prefer, they have a team of agents ready to help.
  • Local and international team: Steadily is based in Austin, Texas, with agents all over the country. But they also have a team of people from all over the world, which is quite common for startups. Specifically, some administrative tasks are outsourced to Chinese employees without visibility of the property owner’s personal information.
  • All 50 states are covered: Steadily offers landlord insurance in all 50 states, so you can get coverage no matter where your rental property is located.

Cons

  • No multi-policy bundling: If you’re looking for a one-stop shop that offers both landlord and non-landlord property insurance, then Steadily is not the right choice. You will need to get two separate policies from two different companies since Steadily only focuses on landlord insurance.
  • No coverage for your tenant’s property: If your rental property allows tenants to have their own furniture or electronics, they will not be covered by Steadily.
  • Steadily is a new company: Steadily is a new firm that hasn’t been stress-tested by extreme economic conditions. While they raised over $31 million in funding, the question remains: Do they have enough backing to honor mass claims?

My recommendation is to go ahead and get a quote from Steadily. Look at the coverage and premiums, and see if the offer on the table suits your property’s needs.

Avatar About Philip Taylor, CPA

Philip Taylor, aka "PT", is a CPA, blogger, podcaster, husband, and father of three. PT is also the founder and CEO of the personal finance industry conference and trade show, FinCon.

He created Part-Time Money® back in 2007 to share his advice on money, hold himself accountable (while paying off over $75k in debt), and to meet others passionate about moving toward financial independence.

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