Landlord Insurance in Delaware: Costs, Requirements & Best Providers

Two Delawares for insurance purposes

Delaware’s benchmark of $1,365 is one of the lowest in the country. A landlord (DP-3) policy on the same $400,000 house would typically run about $1,570 to $1,710. For a rowhouse in Wilmington or a split-level in Dover, that’s close to what you’ll see.

The coast is different. Oceanfront towns from Lewes to Fenwick Island and the bay communities along the Delaware Bay take the brunt of nor’easters and the occasional hurricane, and insurers price those ZIP codes separately.

Coastal Sussex County

Three things change on the coast:

• Hurricane deductibles. Coastal policies often carry a separate deductible for named storms, set as a percentage of the dwelling limit. A 2% deductible on a $400,000 beach house is $8,000.
• Flood. Landlord policies exclude flood. Lenders require flood coverage in FEMA special flood hazard areas, and much of the barrier coast is mapped that way.
• Fewer carriers. Some insurers limit new business close to the water, so expect fewer quotes and higher prices.

Nor’easters do as much damage here as hurricanes. They last longer, stack tides and flood streets on the bay side of the beach towns. An elevation certificate can cut the cost of a flood policy if the building sits above the base flood elevation.

Inland risks

North of the canal, the risks are ordinary mid-Atlantic ones: winter storms, frozen pipes, wind and the occasional flash flood along creeks in New Castle County. Older rowhouses in Wilmington share walls, so a fire next door can become your claim. Underwriters will ask about the roof age, wiring and heating type.

Beach rentals and how you rent them

Many Delaware coastal owners rent by the week in summer and long-term or not at all in winter. Insurers treat those differently. Weekly guests are short-term rental exposure, and a house that sits empty from October to May may trip a vacancy clause, which commonly limits coverage after 60 consecutive days without occupants. Tell the insurer your actual pattern, and winterize the plumbing if the house will be empty.

What lenders require

Expect to show dwelling coverage at least equal to the loan or rebuild cost, the lender listed as mortgagee, flood coverage in a mapped zone, and wind coverage on coastal policies. Investment-property lenders often want loss-of-rent coverage too.

Ways to pay less in Delaware

1. Get an elevation certificate before you price flood coverage on a coastal property.
2. Add storm shutters or impact-rated windows on the coast and ask about wind discounts.
3. Raise the all-other-perils deductible on an inland rental with a low claim history.
4. Put several inland rentals on one portfolio policy; Obie writes blanket coverage.

Delaware deposit and notice rules

For leases of one year or more, Delaware caps the security deposit at one month’s rent, with no limit on month-to-month tenancies after the first year, and allows a separate pet deposit of up to one month. You must return the deposit with an itemized list within 20 days after the tenancy ends, or owe twice the deposit (25 Del. C. § 5514). Ending a month-to-month tenancy takes 60 days’ written notice (25 Del. C. § 5106), and entry requires 48 hours’ notice (25 Del. C. § 5509). Plan post-storm inspections with that 48-hour window in mind.