Property Investment Protection

Landlord Insurance

Protect your rental property investment with comprehensive coverage designed specifically for landlords. Whether you own a single-family rental or a multi-unit building, we can help you explore coverage options that fit your needs.

Building Coverage

Loss of Rent

Liability Protection

1-4 Unit Buildings

Get a Free Quote Call (585) 657-6101

Two residential doors side by side in a multi-family rental building representing landlord insurance coverage

44M+

Rental Units in the US

Source: US Census Bureau

15-25%

Higher Cost Than Homeowners

Industry Average

$50,000+

Average Liability Claim

Industry Data

Important: Homeowners Insurance Won't Cover Rental Properties

If you own a home that you don't live in and rent to others, you need landlord insurance—not a standard homeowners policy. Standard homeowners policies require owner occupancy and may deny claims on tenant-occupied properties.

What Is Landlord Insurance?

Landlord insurance, sometimes called a dwelling fire policy or rental property insurance, is designed specifically for property owners who rent their properties to tenants. Unlike homeowners insurance, which is meant for owner-occupied dwellings, landlord insurance addresses the unique risks that come with rental property ownership.

Whether you own a single-family rental home, a duplex, triplex, or four-unit building, landlord insurance may provide the coverage you need to protect your investment. Properties with five or more units typically require commercial property insurance instead.

Why Does Landlord Insurance Cost More Than Homeowners?

A common question landlords ask is why their insurance premium is higher than what they pay for their own home. The answer lies in risk assessment and claims experience:

Higher claim frequency: Insurer experience shows that claims for rental dwellings are higher per capita than owner-occupied homes.
Reduced property awareness: When a homeowner lives in the home, they are more tuned in to potential threats and often exhibit pride of ownership through regular maintenance.
Limited tenant response: Tenants may not know where the water shutoff is or may be limited in actions they can take during an emergency when every second counts.
Increased liability exposure: Landlords face potential lawsuits from tenant injuries, visitor accidents, and pet-related incidents.

Quick Facts

Covers 1-4 unit residential rental properties
Loss of rent coverage protects your income
Does NOT cover tenant belongings
5+ units typically need commercial coverage

Coverage Components of a Landlord Policy

A comprehensive landlord policy has multiple coverage parts, each designed to protect different aspects of your rental property investment.

1. Building Coverage

This insures your interest in the building structure. You may have the option of selecting Actual Cash Value (ACV) or Replacement Cost Value (RCV):

RCV:Insures the home for the cost to rebuild with today's labor and material costs
ACV:Determined by a percentage of replacement cost or another measure like purchase price, minus depreciation

2. Personal Property Coverage

Many rental houses or apartments have landlord-owned furnishings such as refrigerators, laundry machines, dryers, or may even provide a "fully furnished" living space.

Important: Tenant personal property is NOT included in the landlord's policy. Tenants should obtain renters insurance to cover their own belongings and liability.

3. Loss of Rental Income

When significant damage makes a rental unit uninhabitable, tenants may move elsewhere—taking their rent with them. Since many landlords depend on rental income, this coverage helps reimburse lost rent during repairs.

Note: Loss of rents coverage should be sufficient for repairs that may take up to a year or more to complete before the unit is ready for occupancy.

4. Liability Coverage & Medical Payments

As the property owner, you could be named in lawsuits concerning accidents or injuries on the premises. This coverage provides legal defense and may pay for liability settlements or judgments.

Pet Liability: Many landlords are rightfully cautious about renting to pet owners because they could be brought into lawsuits involving tenant pet injuries.

Understanding Your Coverage

Typically Covered

Building structure damage from covered perils
Fire, lightning, windstorm, and hail damage
Theft and vandalism
Landlord-owned appliances and furnishings
Landscaping equipment and maintenance tools
Loss of rental income during covered repairs
Liability for tenant or visitor injuries
Legal defense costs
Medical payments to others
Additional structures (detached garage, shed)

Typically Not Covered

Tenant's personal belongings (requires renter's insurance)
Flood damage (requires separate flood policy)
Earthquake damage (requires separate endorsement)
Wear and tear or maintenance issues
Pest or vermin damage
Intentional damage by landlord
Government action or code violations
War or nuclear hazard
Unpaid rent from tenant non-payment (not a covered peril)
Business activities beyond rental operations

Protect Your Rental Property Investment

Speak with a licensed insurance professional about coverage options for your rental property.

Schedule a Consultation (585) 657-6101

How Is My Rate Determined?

Insurance companies consider various factors when calculating your landlord insurance premium. Understanding these factors may help you find ways to reduce your costs.

Factor	Impact on Premium
Number of Units	More units (up to 4) typically mean higher liability premiums due to increased traffic and exposure
Property Location	Crime rates, fire department proximity, and weather patterns in your area affect rates
Building Age & Construction	Older buildings or those with outdated electrical, plumbing, or heating may cost more to insure
Coverage Limits & Deductible	Higher coverage limits increase premiums; higher deductibles may lower premiums
Claims History	Previous claims on the property or by you as a landlord may increase rates
Lease Requirements	Some companies offer discounts when leases require annual commitments and tenant renters insurance
Valuation Method	Replacement Cost policies typically cost more than Actual Cash Value policies

Tips for Landlords

Require Renters Insurance

Include a lease provision requiring tenants to maintain renters insurance. This protects tenant belongings and provides liability coverage that may reduce claims against you.

Document Everything

Keep detailed records of property improvements, maintenance, and landlord-owned items. This documentation may be valuable if you need to file a claim.

Consider an Umbrella Policy

If you own multiple rental properties, a personal umbrella policy may provide additional liability protection beyond individual property policy limits.

Frequently Asked Questions

What is the difference between homeowners insurance and landlord insurance?

Homeowners insurance covers owner-occupied properties, while landlord insurance is designed for properties rented to tenants. Landlord policies typically include loss of rent coverage, do not cover tenant belongings, and often have higher premiums due to increased liability exposure.

Why does landlord insurance cost more than homeowners insurance?

Landlord insurance typically costs 15-25% more than comparable homeowners policies because rental properties experience higher claim frequency, tenants may not maintain properties as carefully as owners, and landlords face increased liability exposure from tenant activities.

What does loss of rent coverage provide?

Loss of rent coverage (also called fair rental value) reimburses landlords for lost rental income when a covered peril makes the property uninhabitable. This coverage continues until repairs are completed or the policy limit is reached.

Can I use my homeowners policy to cover a rental property?

No. If you rent out a property you own, a standard homeowners policy will not provide adequate coverage. Homeowners policies require owner occupancy and may deny claims if the property is tenant-occupied. You need a landlord or dwelling fire policy.

Does landlord insurance cover tenant belongings?

No. Landlord insurance only covers the building, landlord-owned personal property (like appliances), liability, and loss of rent. Tenants are responsible for insuring their own belongings through a renters insurance policy.

What happens if my property has more than 4 units?

Properties with 5 or more units typically require a commercial property insurance policy rather than a residential landlord policy. Commercial policies address the increased complexity and liability exposure of larger multifamily properties.

Should I choose Replacement Cost or Actual Cash Value?

Replacement Cost policies typically pay to rebuild or repair your property with materials of similar kind and quality, without deducting for depreciation. Actual Cash Value policies deduct for depreciation, meaning you may receive less for older buildings or components. While RCV policies cost more, they may provide better protection for your investment.

How much loss of rent coverage do I need?

Consider how long repairs might take after a major loss. Many landlords choose coverage equal to 12 months of expected rental income, as significant repairs (especially after fire or storm damage) can take a year or more to complete.

Related Coverage Options

Depending on your situation, you may want to explore these additional coverage options to complement your landlord insurance.

Flood Insurance

Standard policies exclude flood damage. NFIP or private flood coverage may be needed.

Umbrella Insurance

Additional liability protection that extends beyond your landlord policy limits.

Commercial Property

For buildings with 5+ units or mixed-use properties with commercial tenants.

Renters Insurance

Recommend this to your tenants to protect their belongings and provide their own liability coverage.

Important Information

This information is provided for general educational purposes only and does not constitute insurance advice or policy recommendations. Coverage features described are examples and may not be available in all policies or from all carriers. Actual coverage is subject to the terms, conditions, and exclusions of the policy as issued. Please consult with a licensed insurance professional to discuss your specific coverage needs and options. Stan Steele Agency is licensed in New York State.

Ready to Discuss Your Landlord Insurance Options?

Our licensed insurance professionals can help you explore coverage options for your rental property investment.

Schedule a Free Consultation Call (585) 657-6101

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