Landlord Insurance

What insurance does a landlord need?

Owning a rental property means two big risks: damage to the building and lawsuits from people who get hurt there. A landlord insurance policy (sometimes called a dwelling fire or rental property policy) is built for both. It typically combines:

• Property coverage for the building and items you provide, like appliances.
• Liability coverage, which works like general liability insurance, for injuries and property damage to others caused by conditions on your property.
• Loss of rent coverage, which pays rent you lose while the unit is being repaired after covered damage.

Landlords with commercial buildings or many units may buy a commercial property policy plus commercial general liability, or a business owner's policy if they qualify.

A common mistake is keeping a regular homeowners policy on a home you now rent out. Homeowners policies are generally written for owner-occupied homes. If you rent the property and don't tell your insurer, a claim could be denied.

How much does landlord insurance cost?

Landlord policy prices depend mostly on the property: its location, age, construction, size, rebuild cost and claims history. Insureon does not publish a landlord-only median. For context, its 2026 data from 100,000 small-business customers shows these overall medians:

Things that raise or lower your price:

• Location, especially exposure to wind, hail, wildfire or flooding.
• Building age and condition, including roof, wiring and plumbing updates.
• Number of units and short-term vs. long-term rentals.
• Deductibles and limits.
• Safety features like smoke detectors, alarms and secure entry.

Flood and earthquake damage are often excluded and must be bought separately. Estimate your total with our business insurance cost calculator.

Example claims (illustrative)

Example: A tenant's guest falls on a loose stair railing and breaks a leg. The guest sues you for medical bills and lost wages. The liability part of your landlord policy can pay for your defense and a settlement.

Example: A kitchen fire makes a unit unlivable for three months. Property coverage pays for repairs, and loss of rent coverage replaces the rent you would have collected.

Example: A tenant says mold in the unit made them sick. Many policies limit or exclude mold, so check your coverage carefully.

Is landlord insurance required?

No law requires most landlords to buy insurance, but mortgage lenders almost always require property coverage, and some HOAs and condo associations have their own requirements. Commercial leases and property management agreements may also require specific liability limits.

If you hire employees, such as a maintenance worker or property manager on your payroll, workers' compensation is required in most states. See workers' comp requirements by state. For handymen and contractors you hire, ask for their certificate of insurance before work starts.

Do you need an LLC as a landlord?

Many landlords hold properties in an LLC. An LLC can help separate the rental's business debts from your personal assets. It does not replace insurance: the LLC itself can still be sued, and an LLC doesn't pay for repairs after a fire. Make sure the policy names the correct owner, especially if the property is held by an LLC.

What tenants should cover

Your landlord policy generally does not cover your tenants' belongings or their liability. Many landlords require tenants to carry renters insurance in the lease. It protects tenants and can reduce disputes with you after a loss.

Short-term rentals and vacation homes

Renting a property by the night is different from a 12-month lease. Many standard landlord policies exclude or limit short-term rentals because guests change often and use the property like a hotel. If you rent on short-term rental platforms:

• Tell your insurer and ask for a short-term rental policy or endorsement.
• Don't rely only on platform protection programs. They may have limits, exclusions and conditions that don't match a full policy.
• Check local rules, since some cities require registration or specific insurance for short-term rentals.

Contractors and repairs

When you hire a handyman, roofer or plumber, ask for a certificate of insurance before work starts. If an uninsured contractor is injured on your property or damages a tenant's unit, the claim may land on your policy. Requiring contractors to carry general liability and, if they have employees, workers' compensation protects you and your premium.

Vacant properties

Most landlord policies limit coverage when a property is vacant for a long period, often 30 or 60 days. Vandalism, theft and water damage may not be covered after that. If a unit will be empty between tenants or during renovation, ask your insurer about vacancy coverage.

Choosing liability limits

Landlord policies often start with $300,000 or $500,000 of liability coverage. Serious injury claims can exceed that. Many landlords choose at least $1 million, either on the landlord policy or by adding an umbrella. The more properties and assets you own, the higher your limits should be.

How to lower your premium

• Maintain the property: fix railings, stairs, lighting and walkways quickly.
• Update older systems such as roofs, electrical panels and water heaters.
• Install safety devices like smoke and carbon monoxide detectors and water leak sensors.
• Screen tenants and use a clear written lease.
• Raise your deductible if you have cash reserves.
• Bundle multiple properties with one insurer, and add an umbrella instead of very high limits on each policy.