Landlord Insurance

Coverage for rental property owners including liability and lost rent.

Typical cost: $800 – $2,000+ per year

What Is Landlord Insurance?

Landlord insurance (rental property insurance) protects property owners who rent their homes to tenants. It covers the dwelling structure, liability claims, and lost rental income—but not tenant belongings, which require renters insurance.

How It Differs from Homeowners Insurance

Standard homeowners insurance doesn't cover rental activities. If you rent out your home and file a claim under a homeowners policy, it may be denied. Landlord insurance is specifically designed for the unique risks of rental properties, typically costing 15-25% more than homeowners insurance.

Coverage Types

DP-1 policies cover basic named perils. DP-2 adds more perils. DP-3 provides open-peril coverage for the dwelling. Most landlords choose DP-2 or DP-3 for comprehensive protection against the various risks that come with rental properties.

What's covered

Dwelling Coverage

Protects the rental property structure from fire, storms, vandalism, and other covered perils.

Liability Protection

Covers legal costs and settlements if a tenant or visitor is injured on the property.

Loss of Rental Income

Replaces rent payments while the property is uninhabitable due to a covered loss.

Other Structures

Covers detached garages, sheds, and fences on the rental property.

Landlord Furnishings

Covers appliances and furnishings you provide for tenants.

Vandalism Coverage

Protects against intentional damage by tenants or others.

Specialized coverage

Explore specific landlord insurance options.

Pros and cons

Advantages

  • Protects your rental property investment
  • Loss of income coverage maintains cash flow during repairs
  • Liability coverage defends against tenant injury claims
  • Covers landlord-owned appliances and furnishings
  • Available for single-family, multi-family, and condos
  • Tax-deductible as a business expense

Considerations

  • Costs 15-25% more than standard homeowners insurance
  • Does not cover tenant belongings
  • Vacancy exclusions apply if property is empty too long
  • Wear and tear from tenants not covered
  • Flood and earthquake require separate policies

Frequently asked questions

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