How much does insurance cost for a small care home or assisted living home?

Insurers that write care homes price the liability on the number of licensed or occupied beds, not on revenue. The rate per bed moves with the level of care you provide (memory care costs more than basic assisted living), your state, your claims history, and how the policy is structured.

For a residential care home of 6 to 16 beds, the typical span is $900 to $5,500 per bed per year for general and professional liability together. Multiplied out, a six-bed home is roughly $5K to $33K, and a ten-bed home roughly $9K to $55K. The bottom of the range is a clean history in a state with limits on damages; the top is a state where claims are larger and more frequent, or a home with a recent claim.

Small homes often pay a higher rate per bed than large communities. There is no scale to spread the fixed cost of underwriting and defending a claim across.

The liability line is usually the largest piece, but not the only one. Budget separately for property coverage on the building (or a tenant policy if you lease), workers compensation for your caregivers, auto coverage if anyone drives residents, and often employment practices and crime coverage for resident funds.

The most common problem at this size is a general business owner policy sold as care home insurance. It costs far less because it covers slips on the sidewalk, not the care you provide. When a resident falls during a transfer or is injured by another resident, that policy typically excludes the claim as a professional service.

Before comparing prices, ask each agent one question in writing: does this policy cover a claim that we failed to provide adequate care? If the answer is not a clear yes with the coverage part named, the lower price is not buying the coverage you need.

Have your bed count, level of care, state, any claims in the last five years, and your current policy (if you have one) ready. With those, an agent who works in this class can tell you where in the range you are likely to land. We review that set of documents free and tell you what your current policy does and does not cover.