Protect Your Rental Investment with Steadily
- Comprehensive coverage for fire, water, vandalism, and more
- Quick online quotes—get insured in minutes
- Tailored policies for short, mid, and long-term rentals
- Nationwide availability across all 50 states
Introduction: Landlord Insurance Isn’t Optional—It’s Essential
Real estate investing is all about building and protecting wealth. But many new investors overlook a major risk factor: being underinsured.
While standard homeowners insurance may cover a primary residence, it won’t protect your rental income, tenant-related damages, or legal liability as a landlord. That’s where landlord insurance—also known as dwelling policy insurance or rental property insurance—comes in.
Whether you own a single-family rental or a 20-door portfolio, landlord insurance isn’t just a smart move—it’s a non-negotiable safeguard for your investment.
What Is Landlord Insurance?
Landlord insurance is a specialized insurance policy designed to protect rental properties and their owners. It provides coverage for:
- The structure (building or dwelling)
- Liability protection in case tenants or guests are injured on your property
- Loss of rental income if the property becomes uninhabitable due to a covered event
- Optional coverage for personal property (like appliances) or vandalism
This differs from homeowners insurance, which assumes the owner lives in the property and doesn’t rent it out to tenants.
🧠 Investor Tip: If you’re using a DSCR loan or purchasing in an LLC, most lenders will require proof of landlord insurance before closing.
Why Every Real Estate Investor Needs Landlord Insurance
1. Standard Homeowners Insurance Doesn’t Cover Rental Risks
Homeowners policies often exclude claims related to tenant activity. If a pipe bursts or a fire starts while the unit is occupied by a renter, your homeowners policy may not pay out.
Landlord insurance is built to cover those exact scenarios.
2. Protects Against Property Damage from Tenants or Natural Events
Whether it’s a tree falling during a storm or a tenant causing damage beyond the security deposit, landlord insurance steps in to protect your asset.
Covered events usually include:
- Fire
- Wind or hail
- Water damage (not floods)
- Vandalism or theft
- Tenant-caused damage (optional in some policies)
3. Covers Loss of Rental Income
If your unit becomes uninhabitable due to a covered event, landlord insurance can replace lost rental income during repairs.
That’s a lifeline for your cash flow.
4. Liability Protection for Lawsuits or Injuries
If a tenant or visitor gets hurt on your property—say, slipping on icy steps—and sues you, landlord insurance covers:
- Legal defense costs
- Medical payments
- Settlements or judgments
With lawsuits becoming more common, liability coverage is non-negotiable for any investor.
5. Peace of Mind to Scale Your Portfolio
Landlord insurance frees you to scale confidently. Instead of worrying about “what ifs,” you’re protected against the unexpected.
It’s a cornerstone of sustainable real estate investing—right alongside financing strategy and tenant screening.
What Does Landlord Insurance Typically Cover?
| Coverage Type | Included in Most Policies |
| Dwelling/Structure Damage | ✅ Yes |
| Liability Protection | ✅ Yes |
| Loss of Rental Income | ✅ Yes |
| Personal Property (appliances, etc.) | ✅ Often included or optional |
| Tenant Vandalism | 🟡 Optional |
| Floods or Earthquakes | ❌ Separate policies required |
📌 Note: Always review your specific policy with your insurance provider. Some add-ons—like rent default or HVAC equipment breakdown—may be worth considering.
Real-World Example: A Costly Mistake Avoided
Case Study: Jamal, a BRRRR Investor
Jamal purchased a fourplex in Kansas City and immediately rented out all four units. Six months later, a kitchen fire started in one unit, spreading to another. Fortunately, Jamal had a landlord insurance policy that:
- Paid $38,000 in property damage repairs
- Covered 3 months of lost rent during renovation
- Handled a legal claim from a tenant who was temporarily displaced
Without that coverage, Jamal would have paid those costs out-of-pocket—potentially sinking his ROI for years.
How Much Does Landlord Insurance Cost?
On average, landlord insurance costs 15–25% more than homeowners insurance due to the increased risks. That typically translates to:
- $1,000–$2,500/year for single-family rentals
- Higher premiums for multifamily or high-risk areas
Factors that affect pricing include:
- Location
- Property type and age
- Tenant history
- Coverage limits
- Deductibles
💡 Tip: You can often bundle landlord policies across multiple properties to save money—ask about portfolio discounts or blanket coverage.
Does My Lender Require Landlord Insurance?
If you’re using financing—especially an investor-focused option like a DSCR loan, fix-and-flip loan, or even a HELOC—yes.
Lenders require evidence of proper insurance before closing, and it must cover:
- Full replacement cost of the dwelling
- At least $500K in liability (often more)
- Rent loss protection in some cases
Skipping this step can delay or cancel your funding.
Where to Get Investor-Friendly Landlord Insurance
Not all insurance companies are equally investor-savvy. Look for providers that specialize in landlord insurance for real estate investors, such as:
- Steadily (affiliate-friendly + landlord-focused)
- State Farm
- Farmers
- Hippo
- Proper Insurance (for short-term rentals)
Ask questions like:
- “Can this policy cover short-term or mid-term rentals?”
- “Is tenant-caused damage covered?”
- “What is the process for filing a rental income claim?”
Final Takeaways: Protect the Foundation of Your Investment Strategy
Rental properties are income-producing assets. Just like you wouldn’t drive without auto insurance, you shouldn’t rent without landlord insurance.
Whether you’re buying your first duplex or scaling a 15-door portfolio with DSCR loans, protecting your property, income, and liability is essential.
Landlord insurance is the safety net that lets you grow with confidence.
Protect Your Rental Investment with Steadily
- Comprehensive coverage for fire, water, vandalism, and more
- Quick online quotes—get insured in minutes
- Tailored policies for short, mid, and long-term rentals
- Nationwide availability across all 50 states
Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
