Landlord and Rental Property Insurance
- Landord insurance protects properties not occupied by the owner
- While this coverage insures the dwelling, it offers no protection for tenants, who would need renters insurance to safeguard their belongings.
What is landlord insurance?
Landlord insurance — also known asrental property insurance or dwelling insurance — is meant to protect rental properties containing between one and four rental units not occupied by the owner. Rental property insurance shields landlords and property owners from potential financial losses caused by property damage and liability.
If you rent out a home, apartment, or condo, you'll need insurance to protect your investment. Since tenants don’t have a financial stake in the property, rental homes are more prone to damage and neglect than owner-occupied ones. As a result, insurance companies see them as higher risk, making landlord insurance pricier than a standard homeowners policy.
Zebra Tip: You may be allowed to deduct landlord insurance payments from your taxes
What does landlord insurance cover?
The below coverage options are available as part of a landlord insurance policy. Depending on the policy and insurance company you select, these coverage options may differ along with their corresponding coverage limits.
Property damage
This coverage helps pay for repairs to damaged property. Coverage amounts and limits vary by policy.
Dwelling
This coverage works to replace the structure of your home if it is destroyed as a result of a covered loss.
Other structures
This coverage kicks in to cover detached structures on your property — like a fence or a garage.Â
Loss of use
If the rental is unlivable following a covered loss, this coverage helps compensate for the rental income you're not receiving while it's being repaired.Â
Liability
Liability coverage helps cover medical expenses and legal fees if someone is injured on your rental property.
Home contents/personal property in the rental
If you leave any personal property, like appliances, for use by the tenant in the rental property, this optional coverage will help pay for the damage your home contents sustain under a covered loss. Note that this does not cover the tenant's belongings in any way, and only protects the owner or landlord's personal items.Â
What does landlord insurance not cover?
You should always read your policy line by line and understand the exclusions. Rental property insurance is unique from homeowners and renters insurance and has some exclusions you should keep in mind when trying to understand your policy.

Landlord insurance only protects the landlord's property and assets. It does not apply to any of the tenant's personal property or belongings — even if some of their belongings are damaged in the event the rental suffers a covered loss — so tenants will need to purchase renters insurance to account for their own items.

The property you're renting should be non-owner-occupied — meaning you cannot live on the same property you're renting out to tenants, even if they live in another unit, room, or floor. In this case, you would not be eligible for a landlord policy, and you'd need to bolster your own homeowners policy to cover the area of the property you're renting out.

If appliances in your rental property break down due to wear-and-tear, it won't be covered and the repair or replacement will have to be paid for out-of-pocket. Unless your home contents are specifically insured in your policy and become damaged from a covered loss, a landlord policy is not applicable to the loss.
The different types of landlord policies
Landlord policies are a type of dwelling insurance so it abides by the same tiers of coverage that define what perils (causes of loss) it protects against — DP-1 (basic), DP-2 (broad), and DP-3 (special).
DP-1 policy coverages
A DP-1 policy is the most basic tier of coverage, protecting your dwelling, other structures, and personal property at actual cash value — which deducts for depreciation. Also referred to as a named peril policy, a DP-1 policy only pays out claims if you suffer a loss that's specifically named or specified in your policy.
DP-2 policy coverages
A DP-2 policy, or Broad Form, is the next tier of coverage and is slightly more robust than a DP-1. Similarly, it protects against named perils and pays out claims for your dwelling and other structures at replacement cost, while personal property is covered on an actual cash value basis.
DP-3 policy coverages
Also known as an open peril policy, a DP-3 policy protects against all perils except those specifically listed in the policy. It offers the most comprehensive level of coverage for your dwelling and other structures and pays out based on replacement cost. However, your personal property is still only covered in the event of the same named perils as a DP-2 policy and is reimbursed on an actual cash value basis.

What’s the difference between rental property insurance and homeowners or renters insurance?
- A homeowners insurance policy protects the insured party's primary residence, including the structure of the home and its contents.
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A renters insurance policy provides coverage to the tenant to protect their personal property only— it does not apply to the dwelling they're renting.
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A landlord policy is meant to cover a non-owner-occupied dwelling and offers no protection for tenants.Â
Depending on the policies, all three types can include liability protection.
Insurance for short-term rentals
Depending on the duration for which your rental property is typically occupied, there's an important distinction to be made when it comes to acquiring insurance coverage.
→ Frequent renters
If you rent your property short-term, insurers may classify it as a business. While platforms like Airbnb provide some coverage, it has gaps—excluding personal belongings, certain liability claims, and property issues. To stay fully protected, consider a commercial policy tailored for vacation rentals. Failing to disclose short-term rentals to your insurer could void your policy.
→ Infrequent renters
The case might be less complicated if you only occasionally rent out your property, or if it's a one-time short-term rental. Your existing homeowners policy may be sufficient, but you should confirm with your insurance company to avoid surprises. If it's not covered, consider adding an endorsement — specifically a rental rider — to your policy to ensure you're protected when you need to rent out your home.Â

Insurance for long-term rentals
If you have a long-term tenant living in your rental property (for a period of six months or longer), you'll need landlord or rental dwelling insurance. This will protect you from potential financial losses due to damage or destruction of your rental property. If the property is affected by a covered loss like a fire, your landlord insurance should cover the cost of repairs.
Find the right policy for your unique needs.
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