Find the Right Coverage for Your Rental Property: A Guide to the Best Landlord Insurance


Bryan Huynh

- Updated February 23, 2024

Find the Right Coverage for Your Rental Property: A Guide to the Best Landlord Insurance

Landlord insurance is a business insurance policy designed specifically to provide coverage for property owners who rent out their assets. Unlike traditional homeowners insurance that only covers owner-occupied homes and properties, landlord insurance is tailored to help landlords protect their buildings, land and rental income in the event of damage or loss.

Policies may vary between companies, but they generally provide coverage for situations such as property damage, lost rental income if a tenant has to vacate due to damage, and general liability in the case of a tenant or visitor being injured while on the premises.

Is Landlord Insurance a Legal Requirement?

While there is no federal law that requires landlords to have landlord insurance in the United States, some states and localities may have certain requirements. However landlords should treat their rentals like a business and sometimes that means putting their rental in an LLC. In fact, mortgage lenders often require landlords to carry insurance so as to protect their investment in the property. Additionally, some cities will even mandate that landlords obtain liability insurance for injuries to tenants or damages to their property.

Although having landlord insurance is not a legal requirement, it can still be incredibly beneficial for landlords. Landlord insurance is a type of business insurance that can provide financial protection from unforeseen costs resulting from damage to the rental property, loss of rental income and liability claims. With this type of coverage, landlords can rest easy knowing they have protection should anything go wrong with their rental property.

Obtaining landlord insurance can potentially save landlords money in the long run if an incident occurs that results in a lawsuit or significant damages needing to be repaired. Without such coverage, these costs can be very expensive and potentially drain a landlord's finances. Because of this, it is highly recommended that all landlords invest in landlord insurance regardless of whether it is mandated by law or not.

Things to Consider When Shopping for Insurance

When shopping around for landlord insurance it's important to look at more than just the price tag. Here are a few things to consider:


The reputation of a landlord insurance company is an important factor to consider when selecting one. Reading customer reviews can provide valuable insight into how reliable and responsive the company is in providing services such as claims processing or customer service inquiries. Additionally, talking to local real estate professionals or other landlords can also provide helpful information about their experiences with various companies.

Make sure that the company has good ratings and customer service agents who are easy to reach.

Coverage Options

Also consider what types of coverage are included in each plan; some plans may offer additional protection such as payment for hotel stays if a tenant needs somewhere else to stay temporarily due to damage.

Company’s Financial Stability

Researching a landlord insurance company’s financial stability is also important for ensuring that they will be able to pay out on any claim made against them. The ratings offered by agencies like A.M Best or Moody's can help determine if a particular insurer is financially stable enough to cover any potential losses incurred from claims made against them.


It's also a good idea to read through any exclusions so you know exactly what situations would not be covered under your policy. Then compare quotes from different insurers and make sure you understand everything before signing up.

Remember, landlord insurance is there to protect your assets so don't skimp on cover or settle for second best - get the right cover from a reputable insurer who will be there when you need them most.

Cost of Premiums

Finally, assessing the cost of premiums should also be taken into account while selecting a landlord insurance company. Since this type of policy provides more comprehensive protection than standard home or auto policies, premiums tend to be higher; however, these costs shouldn’t outweigh potential savings gained through proper protection of your rental property assets. Comparing quotes from different companies will help you find an option that fits within your budget while still providing adequate coverage for your needs as a landlord.


What Landlord Insurance Covers

Landlord insurance typically covers various damages and risks to the rental property caused by:

  • Fire
  • Lightning
  • Windstorms
  • Hail
  • Explosion
  • Smoke
  • Vandalism
  • Theft
  • Frozen plumbing

In addition to damage to the physical structure of your rental property, landlord insurance also helps protect against liability claims that could come up if someone is injured while on your property. This includes bodily injury or property damage claims brought against you by a tenant or visiting guest. It can also help pay for medical expenses and legal costs associated with a personal injury lawsuit.

Landlord insurance typically can provide coverage for temporary living expenses if your tenants are forced to temporarily vacate due to a covered peril leaving them homeless. Depending on what type of policy you opt for, landlord insurance can also cover additional costs like loss of income if your tenants must move out due to damage from a covered event. In this case the policy would help pay any lost rent income for the period during which your rental was uninhabitable.

Landlord Insurance VS. Homeowner’s Insurance

Landlord insurance is typically cheaper than regular homeowner's insurance. This is because landlord insurance only covers the physical structure of the building, whereas homeowner's insurance also covers liabilities and personal possessions inside the home.

Landlord insurance does not cover damages caused by tenants or their guests, but instead protects against risks such as fire, flooding, theft, and vandalism that landlords would be liable for in a rental agreement.

When purchasing landlord insurance, it is important to read the policy carefully to make sure that it offers all of the coverage that you need. There are often discounts available if you bundle your landlord and homeowner's policies together with the same insurer. Typically, these packages offer further savings over buying two separate policies from different companies.

Homeowner's insurance can also include liability protection if someone is injured on your property or if you unintentionally cause damage to someone else’s property. Ultimately, landlord insurance provides more limited coverage than homeowner’s policies but for much lower premiums compared to traditional homeowner's insurances, making it an attractive option for landlords seeking cheap protection for their investments.


Landlord Insurance Vs. Renter’s Insurance

Landlord insurance is designed to cover the owners of rental property, while renter's insurance focuses on protecting the tenants. Landlord insurance covers costs related to damage caused by tenants or from natural disasters that affect the property.

Typically, this type of insurance covers repairs and legal fees due to tenant negligence or injury as well as financial losses resulting from a tenant not paying rent for an extended period of time. It also provides coverage for lost rental income due to circumstances such as a fire or other event that causes the property to be uninhabitable.

Renter's insurance, on the other hand, is focused on protecting personal belongings and liability when living in a rented home. This type of insurance typically covers theft, accidental damage, fire, natural disasters and other events that may occur while living in a rental property.

Additionally, in some cases it can provide reimbursement for any additional living expenses incurred if your home becomes uninhabitable due to an insured event. In some cases it may also provide liability coverage if you are found responsible for injuries or damages caused by yourself or your family members.

Overall, landlord insurance is intended to protect the owner of the property from financial liabilities associated with renting out their property. Renter's insurance helps tenants protect their own personal belongings and guard against liability should something go wrong while they are living in a rented residence.

Insurance Options

Most major insurance providers have at least one policy or product designed specifically for landlords, although some may require additional riders or endorsements in order to provide full coverage.

Many independent agencies specialize in landlord insurance, allowing property owners and managers to compare rates from multiple carriers before making a purchase decision.


Best Landlord Insurance Companies of 2023

  1. Allstate Landlord Insurance - Allstate is one of the best insurance companies in the business and their landlord insurance plans provide comprehensive coverage for landlords with multiple properties. They offer everything from loss of rental income to financial protection against liability claims, as well as replacement cost coverage for buildings and equipment. Their plans are designed to cover everything a landlord needs to protect their investments, including legal fees and other associated costs.
  2. Liberty Mutual Landlord Insurance- Liberty Mutual has been providing reliable landlord insurance for more than 100 years, giving them an unmatched level of experience in the sector. Their plans are specifically tailored to meet the complex range of needs associated with owning rental properties, offering both personal and commercial policies that provide coverage for property damage, lost rent income, liability claims, tenant disputes and much more.
  3. State Farm Renters Insurance - State Farm offers renters insurance suitable for landlords who want to protect both themselves and their tenants from potential losses or damages caused by fire, vandalism or theft. Plans are customizable according to the specific needs of each property owner and can include additional forms of coverage such as medical payments resulting from accidents on the premises or at an event organized on behalf of the landlord.
  4. Nationwide Landlords Insurance - Nationwide’s comprehensive landlord insurance packages offer extensive protection against a wide range of risks including fire damage, tenant disputes, theft and vandalism for rental homes as well as vacation rentals or short-term leases. In addition to financial protection from these risks, they also provide access to specialized advice services which help landlords identify potential problems before they become costly issues down the line.
  5. Farmers Insurance Rental Property Coverage - Farmers' rental property coverage provides a great way for landlords to protect their investments while helping keep tenants safe at the same time. Their policies cover both physical damage/losses as well as personal liabilities associated with owning rental property; this includes liability protection in case someone is injured on your property due to negligence or accidental occurrences like slip-and-fall accidents. With added benefits such as 24/7 customer service availability and custom deductibles available upon request, Farmers makes it easy for landlords to secure their investments with comprehensive yet affordable coverage options fit just about any budget or lifestyle needs.

Tips for Finding the Right Insurance for You

If you know other landlords, ask them about their insurance and what type of coverage they have found to be essential for their property. You can use this information to get an idea of the different types of coverage available and what would be best for your needs. It's also beneficial to get quotes from multiple carriers with similar coverage so that you can do a cost comparison and determine which one will offer you the lowest rates and the most suitable protection for your property.

Although there are several companies offering online quotes, talking to an agent directly can be beneficial as they may have more knowledge when it comes to understanding your specific needs. They might even be able to provide you with discounts or help you purchase endorsements that would tailor the coverage specifically for your property.

They may present other options that could better suit your requirements and give you more comprehensive protection in case something happens at your rental property or there is a liability claim against you. This way, you can make sure that all the essential features are included in the policy so that they cover all bases when it comes to protecting yourself as a landlord.


Do Your Research

Choosing the right landlord insurance is an important decision that should not be taken lightly. With so many options available, it's important to take the time to review all of the details and select the coverage that fits your needs.

About The Author

Bryan Huynh

Bryan Huynh

Product Tester & Writer

Bryan Huynh is a dedicated Product Tester & Writer. Just as insurance has your back, Bryan works to review and inform you about the wide range of insurance products available, ranging from business, auto, health, home, pet, to life insurance.

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