Landlord insurance is coverage designed for residential properties rented to tenants. Depending on the policy, it may protect the rental building, property owned by the landlord, rental income after a covered loss, and certain liability risks.
A standard homeowners policy is generally designed for an owner-occupied residence. It may not provide appropriate protection when a home is regularly rented to others.
Home insurance is generally intended for a residence occupied by its owner. A rental property introduces different risks involving:
Always tell the insurance provider how the property is occupied and used.
Rental dwelling coverage can help pay to repair or rebuild the property after a covered loss.
Protection may include the main building, permanent fixtures, built-in appliances, attached structures, and certain plumbing, electrical, and heating systems.
Eligible detached structures may include garages, storage sheds, fences, carports, and other qualifying structures.
Other-structures protection may have a limit separate from the main dwelling coverage.
Eligible property you provide for tenant use or maintenance may be covered.
Examples include appliances, furnished-unit furniture, maintenance equipment, lawn-care equipment, and window coverings. Tenant belongings are generally not covered.
Liability coverage may help if you are legally responsible for a covered injury or property damage involving another person.
It may include qualifying legal defense expenses, settlements, or judgments, subject to policy terms and limits.
If a covered loss makes a rental unit uninhabitable, this coverage may reimburse qualifying rental income while covered repairs are completed.
It generally does not cover ordinary tenant nonpayment.
A landlord policy may cover qualifying fire and smoke damage to the rental building and eligible landlord-owned property.
Coverage remains subject to applicable limits, conditions, exclusions, and deductibles.
Optional coverage may address qualifying water or sewage backup through drains, sewers, or sump systems.
Separate limits and deductibles may apply.
Available endorsements may help cover specified equipment breakdowns or qualifying damage to underground service lines serving the property.
Building-code upgrades or increased rebuilding-cost coverage may help when reconstruction expenses exceed the standard dwelling limit.
Additional protection may be needed for landlord-owned furniture, appliances, and other contents provided with a furnished rental unit.
Short-term and vacation rentals may require specialized coverage. Do not assume a standard home or landlord policy automatically covers this activity.
Additional liability protection may be available above eligible underlying policy limits.
Learn more about umbrella insurance.
A landlord policy may exclude or limit losses involving:
Always review the actual policy documents to understand what is and is not covered.
Important considerations include:
The rebuilding cost may differ significantly from the property’s market value.
The correct policy depends on who occupies the property and how it is used. An owner-occupied home and a tenant-occupied rental property generally require different forms of protection.
For commercial, mixed-use, or larger residential properties, explore Commercial Property and Lessor’s Risk Insurance or Apartment Building Insurance.
Factors that may affect availability and pricing include:
Insurance providers evaluate rental properties differently.
Requirements depend on the property, its location, the financing arrangement, and the lease. A mortgage provider may require insurance even when it is not mandated by law. Confirm the legal, lender, and contractual requirements that apply to your property.
A standard homeowners policy may not adequately cover a property regularly rented to tenants. Tell the insurance provider how the property is occupied and used so the appropriate coverage can be considered. Learn more about the distinction on our Home Insurance page.
No. Landlord insurance generally does not protect belongings owned by tenants. Tenants typically need their own renters insurance for personal property and personal liability protection.
Landlord insurance generally does not cover ordinary tenant nonpayment. Loss-of-rental-income coverage usually applies only when a covered property loss makes the rental unit uninhabitable.
A policy may cover certain sudden or malicious damage, depending on the circumstances and policy terms. Normal wear and tear, poor housekeeping, maintenance problems, and some intentional damage may be excluded.
Vandalism may be included or available through an optional endorsement. Coverage can depend on who caused the damage, whether the property was occupied or vacant, and the policy’s conditions and exclusions.
Some sudden and accidental water losses, such as qualifying damage from a burst pipe, may be covered. Flooding, sewer backup, groundwater, gradual leakage, and maintenance-related damage may be excluded or require separate coverage.
A standard landlord policy may restrict coverage after a property remains vacant for a specified period. A vacancy endorsement or specialized vacant-property policy may be needed. Tell the insurance provider about existing or anticipated vacancy periods.
If you rent out a condominium unit, you may need landlord coverage for unit improvements, landlord-owned contents, lost rental income, and liability. The condominium association’s policy generally does not replace coverage for the individual unit owner.
Coverage options for multiple rental properties depend on the insurer, ownership structure, number of properties, and property types. Each location and its use must be disclosed and properly insured.
