Ultimate Guide to Landlord Insurance Policies

Last Updated: June 2026

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What is a Landlord Insurance Policy?

A landlord insurance policy is a type of insurance specifically designed for property owners who rent out one or more units in a single family rental home, multifamily apartment, or condos. It provides coverage for property damage, legal liability, and loss of rental income caused by circumstances covered under the policy. As an integral component of rental real estate insurance, it enables landlords to protect their investments from unexpected events that could otherwise result in significant financial losses.

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What is Covered & Not Covered in Landlord Insurance Policy

Understanding the coverage provided by a standard landlord insurance policy is important for property owners who lease their spaces. It helps to identify the risks that are mitigated and those that remain unattended through policy exclusions. The coverages can vary widely based on provider and policy, but certain elements are commonly found across standard policies.

Typically Covered	Typically Not Covered
Physical damage to the property due to perils like fire, wind, or vandalism	Damage from certain natural disasters, such as floods or earthquakes
Loss of rental income due to a covered loss	Loss of income due to tenant default on rent
Legal liability for injuries or damages occurring on the property	Personal property of the tenant
Cost of repairs or replacements due to damage from a covered peril	Wear and tear, or property maintenance related issues
Certain legal fees and eviction costs	Damage to property from war or nuclear hazard

Average Cost of a Landlord Insurance Policy

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Landlord Insurance Policy Example

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Landlord Insurance Policy Frequently Asked Questions

Is a Landlord Insurance Policy Required?

While not legally mandatory in most jurisdictions, a landlord insurance policy is highly recommended for those renting out their property. Without it, you could face significant financial burdens if a covered event damages your property or leads to lost rental income. Additionally (and most importantly), many mortgage companies require property owners to carry some form of insurance if the rental property has a mortgage. Considering the financial protection it offers, investing in a landlord insurance policy is typically a very wise decision for rental property investors.

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What is the Difference Between Landlord Insurance vs Homeowners Insurance?

Landlord insurance and homeowners insurance primarily differ in the type of protection they provide. Homeowners insurance typically covers owner-occupied residences and includes personal property coverage. Landlord insurance is designed specifically for properties that are rented out to generate income, which typically includes loss of rental income coverage.

Aspect	Homeowners Insurance	Landlord Insurance
Intended use	Owner-occupied properties	Rental properties
Personal property coverage	Typically covers the homeowner’s personal belongings in the home	Typically does not cover tenants’ personal belongings
Liability protection	Generally included	Generally included
Loss of use / Additional living expenses	Covered, if the home becomes uninhabitable due to a covered loss	Typically includes loss of rental income if property becomes uninhabitable due to a covered loss
Structure coverage	Included for damage from covered perils	Included for damage from covered perils

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Does Landlord Insurance Cover Damage Caused by Tenants?

Typically no, landlord insurance often covers damage to the property caused by a tenant if it’s due to a covered peril like fire. However, it generally does not cover damage caused by neglect, misuse, or intentional acts by tenants. In such cases, the tenant’s security deposit or their renters insurance (if they have one) may be tapped for compensation.

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