Rental insurance costs vary regionally. Why? The cost of materials and labor to perform repairs varies based on where you live. Additionally, different regions face specific challenges that might result in claims: People living in places where large-scale storm damage is likely to file more claims all at once, bumping up their premium rates. After regional differences, though, landlord insurance premiums are based on the size and age of the covered buildings, the risks based on the amenities and environment in the buildings, and the choices you make about coverage.

• Square footage of the home: Larger properties have more volume to repair or rebuild, so the base portion of a landlord policy will be determined by the size of the property and any additional structures.
• Value of the property: More expensive properties cost more to insure because they cost more to repair or replace.
• Age and home construction materials: Older properties are more complex to repair, mainly because parts may be hard to come by and repairs may require the homes to be brought up to the current code, which adds to the expenses. 
• Tenancy: Long-term tenants on year-long leases suggest stability and a clientele likely to continue paying rent and care for the property as if it were their own.
• Crime risk: The crime rate in the area around the building can affect the cost of landlord insurance. If crime is low, home values are steady, and the school districts and neighborhoods are well regarded, the rate will be lower. 
• Environmental risk: Insurers don't like losing money, and areas that are likely to be hit by tornadoes or hurricanes are a massive threat to the profit margin. 
• Coverage maximums: Your agent will help you settle on the maximum coverage you need for each event or annually. Increasing the maximums may protect you more effectively but will drive your rate.
• Add-on coverage: Coverage you choose to add, such as guaranteed income, flood, and emergency coverage, will drive up your overall cost.