Landlord insurance for rental properties
Landlord insurance is a policy built specifically for rental properties, covering the building itself, your liability as an owner, and lost rental income if the property becomes uninhabitable. It's different from homeowners insurance, and that difference matters the moment you hand over a key.
The day a tenant moves in, your property stops being a home and starts being a business asset. The building hasn't changed, but the way insurance treats it has. Most standard homeowners policies exclude long-term rental activity outright, which means a claim filed under the wrong policy can be denied.
Here's what changes, what a landlord policy covers instead, and how to make the switch without leaving a gap.
Key takeaways
- Standard homeowners insurance typically excludes rentals—most personal policies exclude business activity, which is why a rental claim gets denied
- A landlord policy covers three main areas–the physical dwelling, liability, and lost rental income
- Expect to pay about 25% more—according to the Insurance Information Institute, landlord policies cost roughly 25% more than a standard homeowners policy, reflecting the added protections
- Your tenant's belongings aren’t included—tenants need their own renters insurance for their personal property
Why carriers price your home differently when you rent it
Standard homeowners insurance is built for homes the owner lives in. When you’re on site, you’re more likely to notice the slow drip under the sink or the outlet that runs warm before either becomes a claim. But a tenant may not pay attention to small issues like these, which is why they often turn into bigger problems. As a result, carriers view rental properties as higher risk and they price the policy accordingly.
Renting for income changes what your policy covers
Most personal policies exclude business activity and renting a property for income counts as one. That is sometimes the reason behind most denied rental claims.
The consequence is real. If a fire happens while a tenant is living in a property still insured as your residence, the carrier can argue it wasn’t the risk it agreed to cover, and the repair costs may be your responsibility.
The Insurance Information Institute draws the line at length of tenancy: leasing to a person, couple, or family for a longer stretch, say six months or a year, generally calls for a landlord or rental dwelling policy.
Determining tenant type
The type of tenant you have will dictate the type of landlord insurance coverage and level of protection you need. While long-term rentals typically need more traditional landlord insurance policies, shorter rental terms require different coverage, which is known as short-term insurance.
Rental platforms such as Airbnb, VRBO, and Furnished Finder have skyrocketed in popularity in recent years and are especially popular in big cities, high tourist areas, or near hospitals with travel nurse contracts. Because of this, short-term rentals can be a great way to amplify your earnings and keep a revolving door of new tenants.
However, it's important to understand that short-term insurance for landlords involves different considerations to ensure that your dwelling and personal property are protected while also meeting your insurance company's requirements. In some cases, you may need to purchase both short-term and landlord insurance when renting out your property. (Note that these two coverages are not the same.)
What a landlord policy actually includes
A dedicated landlord policy is built around the situations that may arise when you’re not the resident. Three parts of the policy do most of the work.
- Dwelling and other structures - the main building plus detached structures such as garages and fences; the Insurance Information Institute describes landlord policies as covering physical damage to the structure from things like fire, lightning, wind, hail, ice, and snow.
- Liability - legal fees and medical costs if a tenant or guest is injured on the property and you’re found responsible
- Fair rental value - payment for lost rental income when a covered loss makes the property uninhabitable during repairs; this protects your cash flow, not just the building.
To better understand how these coverage areas map to specific types of policies, check out our explainer on DP-3 policies.
What does landlord insurance not cover?
Though a landlord's insurance policy covers a lot of the same losses as a standard homeowners policy, not everything will be included. Understanding the limitations of your new coverage is key to protecting your home and financial status.
So, what is not covered by your landlord insurance? Typically, the following are not covered:
- Your home and personal belongings if you live there with the tenant
- Your tenant’s personal belongings
- Standard maintenance or repairs on installed home appliances
- Personal belongings that don’t have to do with maintenance or upkeep of the property
- Property damage from certain excluded perils
First, it’s important to understand which situations qualify for landlord insurance coverage and which don’t. Say that you plan to lease out one room or floor of your home while you still live in another area. While you may technically meet the definition of a “landlord,” a landlord insurance policy won’t cover any home that property owners share with their tenant. The property cannot be your primary residence if you want to secure this type of coverage.
Even if you do qualify for landlord insurance for your rental property, there are still things that won’t be covered. Examples include any personal belongings of yours that don’t have to do with maintaining the home, as well as any personal items that belong to the tenant.
Instead, you might require your tenants to purchase their own renters insurance. Landlords can even include this as a condition of the lease agreement. Renters insurance will help protect your tenants in case of personal property damage or even provide them with relocation expenses if the home is damaged and deemed uninhabitable. This gives them peace of mind and serves to keep the financial ramifications from bouncing back to you.
Homeowners versus landlord insurance: what’s different
A homeowners policy is built around your personal property and personal liability. Whereas a landlord policy is built around the structure and your liability as a business owner.
The practical difference shows up in what’s left out. A homeowners policy typically covers your furniture. A landlord policy doesn’t cover your tenant's furniture, because those belongings are not yours. The Insurance Information Institute is direct about this: a landlord's policy won’t replace a tenant's possessions or pay their living expenses during repairs. But it will typically include the lost-rent protection that’s excluded in a homeowners policy.
Where they differ | Homeowners insurance | Landlord insurance |
|---|---|---|
Occupancy | Owner lives in the home | Tenant lives in the home |
Landlord’s personal property | Included | Not included |
Tenant's personal property | Not applicable | Not included |
Liability insurance | Covered by personal liability | Covered by rental and business activity |
Lost rental income | Not applicable | Fair rental value included |
How much does landlord insurance cost roughly?
Just as with owner occupied homeowners insurance coverage, many different factors can affect the cost of your landlord insurance policy.
Common factors that influence premiums include things like:
- Location of your home
- Age and condition of the home
- Size and value of the property
- Important features like the roof, appliances, and HVAC system (and their age)
The amount of coverage and the deductible you choose will also play an important role in determining your costs.
Whether you own a standalone home, multi-family property, or condo, landlord insurance usually costs upwards of 20% more than you would for standard home insurance on the same property. So, for example, let’s say you pay $1,000 each year for your home insurance coverage when the property is your primary residence. Once you begin to rent it out, though, your annual premium may jump up to $1,200.
Of course, there are ways to get your landlord insurance costs down. There may be discounts available for repairing or replacing older features in your home. While costly upfront, they may reduce your insurance premiums over the years. Installing smart home devices that help monitor your property is another great way that may lower your insurance premiums.
Additional landlord insurance options
To extend your financial and legal protection, there are many different endorsements available to add to a landlord policy. From additional coverages against common perils to protection for multiple properties, here are some of the additional insurance options you may want to consider:
- Additional construction — This add-on will help cover the cost of repairing or rebuilding your home after a natural disaster or covered loss, if the cost exceeds your dwelling coverage limit.
- Commercial policy — If you own multiple rental properties, you may want to consider a commercial policy to help protect a larger portfolio of assets all at once.
- Flood insurance — Many homeowners insurance policies exclude floods as a non-covered peril. With flood insurance coverage, you can help protect yourself from flood damage and limit the cost of repairing your home should flooding occur.
- Vandalism — Not always covered by home insurance policies, vandalism protection helps pay for repairs should your tenant or a guest vandalize your property.
- Loss of rent — Similar to loss of use coverage, loss of rent protection covers you, the property owner, against lost income if the home becomes uninhabitable due to a covered loss.
Choosing the right coverage can make or break your ability to be a successful and long-term landlord, no matter how you plan to rent out your property. Have other questions about how a landlord policy differs from your homeowners insurance policy or which endorsements make the most sense for your situation? Head over to our FAQ page for more information, or contact one of our home insurance agents directly.
What to do next
- Read your current policy for the business activity clause - look at what it excludes, not what it includes; that’s where the gap usually lives.
- Compare across carriers rather than asking just one - how willing a carrier is to insure a rental property varies widely, so your first quote is rarely the best the market has to offer. Our guide to buying home insurance can help you figure out what coverage you need and how to get prepared.
- Match your effective date to the move-in date - not to the lease-signing date, and not to the end of your current billing cycle; the gap between those dates is uninsured.
To read more about what property insurance can cost and why it varies so much by state, see our guides to home insurance costs and buying home insurance.
Hippo helps make home insurance easy. Through our network of 70+ trusted carriers, we’ll find you the best quote and coverage options available. Get a free quote in about 60 seconds at hippo.com.
Frequently asked questions
Do I need landlord insurance?
If you own a home that you rent out to others, you will likely want to purchase a landlord insurance policy. This coverage can provide financial protection against various losses, while landlord liability insurance covers you if someone is injured on the property.
Is landlord insurance more expensive than homeowners insurance?
Generally, yes. The Insurance Information Institute estimates that landlord policies are about 25% more expensive than a standard homeowners policy, based on the additional protections. Your actual rate depends on the property's location, age, condition, and the limits you choose.
Does landlord insurance cover my tenant's belongings?
No. Tenants need their own renters insurance for their personal property. Many landlords require it in the lease for that reason.
Can I add a rider to my homeowners policy instead?
Some carriers offer an endorsement for occasional rentals, but a long-term tenancy usually requires a dedicated landlord policy. Ask before you rely on it.
How can I file an insurance claim as a landlord?
If your property suffers a covered loss, you can file an insurance claim by contacting your landlord insurance carrier directly. Many insurance companies today allow you to initiate a claim through a mobile app or web platform, though you can also call to speak with an agent.
Is there a tax deduction for landlord insurance?
Many eligible expenses can be deducted by landlords at tax time as long as they are relevant to managing your rental. This can include things like landlord insurance premiums.
What is fair rental value?
Fair rental value replaces rental income you lose while a covered loss makes the property unrentable during repairs.
If I reside on the property, do I also require landlord insurance?
Landlord insurance is designed for individuals who own property that they rent out to others, and that is not used as their primary residence. In the case of landlords and tenants living together, the insurance requirements should be two-fold: for tenants, personal belongings and liability coverage through renters insurance; for landlords, a homeowners insurance policy that offers dwelling, personal property, and liability coverage.
This article is for informational purposes only and was compiled from sources not affiliated with Hippo. While we believe this information to be reliable, we do not guarantee its accuracy or completeness. For any insurance-related decision, please consult your licensed insurance producer. Sources cited are publicly available and referenced in August, 2026.
