The cost of landlord insurance can vary significantly from state to state. The good news is that we have included landlord insurance rates by state for all 50 states.
Let's discover which states have the best landlord insurance for tenants and take a look at some of the most affordable and most expensive states for landlord insurance.How Much Does Landlord Insurance Cost By State?
The national average cost of Landlord Insurance is around $1,516 per year and usually costs about 25% more than homeowners insurance due to the additional risks associated with rental properties.
Average Cost Of Landlord Insurance Rates By State Chart
Landlord Insurance costs vary significantly from state to state. The most expensive state for landlord insurance is Rhode Island, where the average annual premium is $2,419. On the other hand, Oklahoma has the most affordable landlord insurance, with an average annual premium of only $595.
STATE | ANNUAL PREMIUM | STATE | ANNUAL PREMIUM |
|---|---|---|---|
Alabama | $1,094 | Montana | $1,319 |
Alaska | $1,759 | Nebraska | $1,440 |
Arizona | $846 | Nevada | $739 |
Arkansas | $1,122 | New Hampshire | $1,213 |
California | $903 | New Jersey | $1,367 |
Colorado | $1,608 | New Mexico | $997 |
Connecticut | $1,546 | New York | $1,396 |
Delaware | $2,419 | North Carolina | $909 |
District Of Columbia | $1,029 | North Dakota | $2,173 |
Florida | $1,721 | Ohio | $946 |
Georgia | $1,261 | Oklahoma | $595 |
Hawaii | $1,259 | Oregon | $665 |
Idaho | $1,207 | Pennsylvania | $993 |
Illinois | $998 | Rhode Island | $2,415 |
Indiana | $1,165 | South Carolina | $1,365 |
Iowa | $976 | South Dakota | $1,022 |
Kansas | $1,114 | Tennessee | $1,013 |
Kentucky | $987 | $1,338 | |
Louisiana | $2,224 | Utah | $802 |
Maine | $1,333 | Vermont | $1,352 |
Maryland | $952 | Virginia | $958 |
Massachusetts | $1,552 | Washington | $868 |
Michigan | $1,022 | West Virginia | $1,185 |
Minnesota | $1,411 | Wisconsin | $1,134 |
Mississippi | $846 | Wyoming | $1,615 |
Missouri | $1,162 | |
What Are the 7 Most Affordable States For Landlord Insurance?
What States Have the Highest Rental Property Insurance Rates?
As you will see below rental property insurance rates for landlords can vary significantly by state; with Louisiana having the highest annual premium at $2,484 and Oregon having the lowest at $883.
STATE | MONTHLY PREMIUM |
|---|---|
Rhode Island | $201.58 |
Delaware | $201.25 |
Louisiana | $185.33 |
North Dakota | $181.08 |
Alaska | $146.58 |
Florida | $143.42 |
Colorado | $134.00 |
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How Much Does Landlord Insurance Cost In The U.S.?
On average, landlord insurance costs about 25% more than homeowners insurance due to the additional risks associated with rental properties. Landlord insurance is an essential investment for anyone renting out property. The cost can vary significantly based on several factors, including the location of the property, the type of coverage, and the insurance company you choose.
How Much Does Landlord Insurance Cost per Month?
The national average cost of Landlord insurance is around $126 per month in the United States; however, keep in mind that your mileage may vary. Rates are state specific and company specific as well so it's best to do some research before finalizing a policy.
Landlord Insurance Cost vs. Homeowners, Condo, & Renters Insurance
Landlord insurance and homeowners insurance serve different purposes and come with different costs. Let's compare them:
Is Landlord Insurance More Expensive or Cheaper Than Homeowners Insurance?
Landlord insurance is generally more expensive than homeowners insurance. This is because rental properties pose additional risks, such as tenant-related damages and loss of rental income. On average, landlord insurance costs about 25% more than homeowners insurance.
Is Rental Property Insurance More Expensive or Cheaper Than Condo Insurance?
Landlord insurance is typically more expensive than condo insurance. Condo insurance usually covers only the interior of the unit and personal belongings, while landlord insurance covers the entire property and additional risks associated with renting it out.
Is Rental Dwelling Insurance More Expensive or Cheaper Than Renters Insurance?
Landlord insurance is more expensive than renters insurance. Renters insurance covers a tenant's personal belongings and liability, while landlord insurance covers the property itself and the risks associated with renting it out.
Who Has the Best Landlord Insurance Rates By State?
Steadily stands out as a top choice nationwide for landlord insurance due to its specialization, competitive pricing, and streamlined onboarding. While rates vary by state due to factors like property values, local regulations, and climate risks. Below is a state-by-state rate chart showing average rates.
State-By-State Landlord Insurance Provider Rate Chart
(Annual premiums for a $300K rental property with standard liability coverage)
STATE | AVG. RATE RANGE | STEADILY (Est.) | OTHER PROVIDERS | RATE FACTORS |
|---|---|---|---|---|
Alabama | $1,200 – $1,800 | $1,100 - $1,600 | State Farm, Farmers | Hurricane risk, older homes |
Alaska | $1,000 – $1,500 | $950 - $1,400 | Liberty Mutual, Farmers | Harsh winters, remote properties |
Arizona | $1,100 – $1,700 | $1,000 - $1,500 | Steadily, Geico | Heat/drought risks, rental demand |
Arkansas | $900 – $1,400 | $850 - $1,300 | Farmers, State Farm | Tornado risk, low property values |
California | $1,500 – $2,500 | $1,400 - $2,200 | Steadily, Liberty Mutual | Earthquakes, wildfires, high home prices |
Colorado | $1,300 – $1,900 | $1,200 - $1,700 | Obie, Geico | Wildfire risk, tech hubs |
Connecticut | $1,400 – $2,000 | $1,300 - $1,900 | Liberty Mutual, State Farm | High liability costs, strict regulations |
Delaware | $1,200 – $1,800 | $1,100 - $1,600 | Steadily, Farmers | Coastal storm risk |
DC | $1,800–$3,000 | $1,200 - $1,700 | Flood risk, rural areas | Hurricane risk, isolation |
Florida | $1,800–$3,000 | $1,600 - $2,800 | Steadily, Liberty Mutual | Hurricanes, high litigation |
Georgia | $1,100–$1,700 | $1,000 - $1,500 | Steadily, Farmers | Tornado risk, growing rental market |
Hawaii | $1,500–$2,400 | $1,400 - $2,200 | Farmers, Liberty Mutual | Hurricane risk, isolation |
Idaho | $950–$1,400 | $900 - $1,300 | Farmers, State Farm | Low risk, rural properties |
Illinois | $1,200 - $1,800 | $1,100 - $1,600 | Steadily, Obie | Urban liability laws |
Indiana | $1,000 - $1,500 | $950 - $1,400 | State Farm, Farmers | Midwest storms, affordable properties |
Iowa | $1,000 - $1,500 | $950 - $1,400 | State Farm, Liberty Mutual | Tornadoes, hail risk |
Kansas | $1,100 - $1,700 | $1,000 - $1,500 | Farmers, State Farm | Tornado Alley, hail |
Kentucky | $1,000 - $1,600 | $950 - $1,500 | Steadily, Farmers | Flood risk, rural areas |
Louisiana | $1,500 - $2,400 | $1,400 - $2,200 | Steadily, Liberty Mutual | Hurricanes, flooding |
Maine | $1,100 - $1,600 | $1,000 - $1,500 | Liberty Mutual, State Farm | Coastal storms, older homes |
Maryland | $1,300 - $1,900 | $1,200 - $1,700 | Steadily, Geico | Proximity to DC, liability risks |
Massachusetts | $1,400 - $2,000 | $1,300 - $1,900 | Liberty Mutual, State Farm | High property values, strict tenant laws |
Michigan | $1,100 - $1,700 | $1,000 - $1,500 | Steadily, Farmers | Snow damage, urban decay risks |
Minnesota | $1,100 - $1,700 | $1,000 - $1,500 | State Farm, Liberty Mutual | Harsh winters, ice dams |
Mississippi | $1,100 - $1,700 | $1,000 - $1,500 | Farmers, Steadily | Hurricane risk, flooding |
Missouri | $1,000 - $1,600 | $950 - $1,500 | State Farm, Farmers | Tornadoes, hail |
Montana | $950 - $1,400 | $900 - $1,300 | Farmers, Liberty Mutual | Wildfire risk, rural properties |
Nebraska | $1,000 - $1,500 | $950 - $1,400 | State Farm, Farmers | Tornado Alley, hail |
Nevada | $1,100 - $1,700 | $1,000 - $1,500 | Steadily, Geico | Heat, low humidity |
New Hampshire | $1,200 - $1,800 | $1,100 - $1,600 | Liberty Mutual, State Farm | Snowload, older homes |
New Jersey | $1,500 - $2,200 | $1,400 - $2,000 | Steadily, Liberty Mutual | High property values, coastal storms |
New Mexico | $1,000 - $1,500 | $950 - $1,400 | Farmers, Steadily | Drought, wildfire risk |
New York | $1,600 - $2,500 | $1,500 - $2,300 | Geico, Liberty Mutual | NYC liability costs, tenant-friendly laws |
North Carolina | $1,200 - $1,800 | $1,100 - $1,600 | Steadily, State Farm | Hurricanes, coastal risk |
North Dakota | $950 - $1,400 | $900 - $1,300 | Farmers, State Farm | Harsh winters, low population |
Ohio | $1,000 - $1,500 | $950 - $1,400 | State Farm, Farmers | Midwest storms, affordable homes |
Oklahoma | $1,200 - $1,800 | $1,100 - $1,600 | Farmers, State Farm | Tornado Alley, hail |
Oregon | $1,100 - $1,700 | $1,000 - $1,500 | Farmers, State Farm | Earthquake risk, rain/flooding |
Pennsylvania | $1,100 - $1,700 | $1,000 - $1,500 | Steadily, Liberty Mutual | Snowstorms, aging infrastructure |
Rhode Island | $1,300 - $1,900 | $1,200 - $1,700 | Steadily, State Farm | Coastal storms, small rental market |
South Carolina | $1,300 - $1,900 | $1,200 - $1,700 | Liberty Mutual, Geico | Hurricanes, tourist areas |
South Dakota | $950 - $1,400 | $900 - $1,300 | Steadily, Liberty Mutual | Hurricanes, tourist areas |
Tennessee | $1,100 - $1,700 | $1,000 - $1,500 | Farmers, State Farm | Tornado risk, growing cities |
Texas | $1,400 - $2,200 | $1,300 - $2,000 | Steadily, State Farm | Wind/hail risk, large rental market |
Utah | $1,000 - $1,500 | $950 - $1,400 | Farmers, Steadily | Earthquake risk, outdoor recreation |
Vermont | $1,100 - $1,600 | $1,000 - $1,500 | Liberty Mutual, State Farm | Snowload, rural properties |
Virginia | $1,200 – 1,800 | $1,100 - $1,600 | Steadily, Geico | Coastal storms, DC proximity |
Washington | $1,300 - $1,900 | $1,200 - $1,800 | Obie, Farmers | Earthquake/rain risk, tech hubs |
West Virginia | $950 - $1,400 | $900 - $1,300 | Farmers, State Farm | Flood risk, rural areas |
Wisconsin | $1,000 - $1,500 | $950 - $1,400 | State Farm, Liberty Mutual | Harsh winters, lake effect snow |
Wyoming | $950 - $1,400 | $900 - $1,300 | Farmers, Liberty Mutual | Wildfires, rural properties |
Key Takeaways:
Steady's Advantages:
Regional Standouts:
Rate Drivers:
Landlord Insurance Cost Calculator For Your Rental Property
Calculating the cost of landlord insurance can be complex, but using a cost calculator can help you estimate your premiums. Here are some tips on how to calculate your insurance needs:
How Do I Calculate How Much Landlord Insurance I Need?
To calculate how much rental property insurance you need, consider the value of your property, the cost of potential repairs, and the amount of rental income you want to protect. It's also important to factor in liability coverage to protect against lawsuits.
How to Calculate If Rental Property Insurance Is Worth It?
To determine if rental property insurance is worth it, compare the cost of the premiums to the potential financial losses you could face without coverage. Consider the risks associated with your property and the peace of mind that insurance provides.
What Factors Affect Landlord Insurance Rates?
LANDLORD INSURANCE | TENANT RESPONSIBILITY |
|---|---|
Covers the building and landlord-owned items | Requires renters insurance to protect their belongings |
Includes liability for property hazards | Covers liability for tenant-caused damage (e.g., kitchen fire) |
Protects against lost rental income | Pays rent even if the unit is uninhabitable (depends on lease terms) |
LANDLORD INSURANCE WHERE YOU LIVE
Landlord insurance by state.
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Should anything happen to your commercial rental property landlord insurance will cover your investment. Click on your state to find out more.
What Is Landlord Insurance?
Landlord insurance is a specialized policy designed to protect rental property owners from financial risks associated with renting out a home, apartment, or commercial space. It covers the physical structure, landlord-owned items, liability claims, and lost rental income, ensuring landlords aren’t left financially vulnerable due to property damage or lawsuits.
What Does Landlord Insurance Cover?
Property Damage:
Liability Coverage:
Loss of Rental Income:
Optional Add-Ons (Riders):
What Landlord Insurance Does NOT Cover
Landlord Insurance vs. Tenant Responsibilities
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Who Are the Best Landlord Insurance Companies?
Choosing the right insurance company is crucial for getting the best coverage at a reasonable price. Here are some of the top companies offering landlord insurance:
Steadily
Steadily is our primary recommendation for landlord insurance. They specialize in rental property insurance and offer a range of coverage options to suit different needs. Their customer service is top-notch, and they provide competitive rates.
biBerk
Offers affordable landlord insurance with budget-friendly DP1/DP2 policies ideal for low-risk properties or landlords prioritizing cost efficiency, featuring a streamlined online purchase process and backed by Berkshire Hathaway’s financial stability. However, its coverage is limited to basic named perils, excluding comprehensive DP3 policies or specialized add-ons like short-term rental protection.
American Family
stands out for its robust liability coverage (up to $1M+) and customizable DP3 policies with optional riders, supported by personalized agent service, though premiums tend to be higher and availability is not nationwide. It’s best for landlords seeking tailored coverage and strong liability safeguards, despite the steeper cost.
State Farm
State Farm is a well-known name in the insurance industry, and they offer reliable landlord insurance policies. They have a strong financial rating and a wide network of agents, making it easy to get personalized service.
Liberty Mutual
Liberty Mutual offers comprehensive landlord insurance policies with various add-ons to customize your coverage. They are known for their excellent customer service and quick claims processing.
Allstate
Allstate provides robust landlord insurance policies with a range of coverage options. They also offer discounts for bundling policies, which can help you save money if you have multiple insurance needs.
Progressive
Progressive is another great option for landlord insurance. They offer flexible coverage options and competitive rates. Their online tools make it easy to get a quote and manage your policy.
Farmers
Offers competitive rates, especially for basic policies, and has a strong reputation for customer satisfaction and financial stability.
Geico:
Provides robust policies with easy digital property management tools, including online quoting and mobile app access for policy management and claims.
Obie:
A Chicago-based company that specializes in insurance for landlords, offers a fully online application process, and claims to offer low rates
What Are the Different Types Of Landlord Insurance Coverage?
There are different types of landlord insurance coverage, each offering varying levels of protection. Here are the three main types:
What Does A DP1 Policy Cover? (Basic Form)
DP1 is the most basic form of landlord insurance. It typically covers named perils such as fire, lightning, and vandalism. However, it may not cover more extensive damages or loss of rental income.
Does A DP2 Policy Provide More Coverage? (Broad Form)
DP2 offers broader coverage than DP1, including additional perils like windstorms, hail, and theft. It also often includes coverage for loss of rental income if the property becomes uninhabitable due to a covered peril.
What Makes A DP3 Policy The Most Comprehensive? (Special Form)
DP3 is the most comprehensive form of landlord insurance. It provides all-risk coverage, meaning it covers all perils except those specifically excluded in the policy. DP3 also includes coverage for loss of rental income and liability protection.
What Insurance Is Best For Landlords?
The best insurance for landlords depends on property type and risk factors:
Short-Term Rentals (Airbnb/VRBO):
Multi-Property Portfolios:
High-Risk Areas (Floods/Earthquakes):
Tenant Non-Payment Concerns:
Affordability:
What To Look For In A Landlord Insurance Provider
- Discounts: Bundling (State Farm), safety features (Steadily), or multi-property (Farmers).
What Things Will You Most Likely Need To Insure As A Landlord?
As a landlord, you will most likely need to insure the property structure against damage from fire, storms, or vandalism. Liability protection, loss of rental income insurance, tenant damage coverage and additional coverage for natural disasters like floods and earthquakes may be necessary.
Rental Property Insurance
Protects the physical structure of the rental property against damage from fire, storms, vandalism, or other covered perils. Essential for safeguarding your investment.
Liability Insurance
Covers legal and medical expenses if a tenant or visitor is injured on your property or if you're sued for negligence. Helps protect against costly lawsuits.
Lost Rental Income Insurance (Rent Loss Insurance)
Compensates for lost rental income if your property becomes uninhabitable due to a covered event, like fire or major storm damage. Ensures financial stability during repairs.
Tenant Damage
Tenant damage coverage is insurance that protects landlords from financial losses caused by tenant-caused property damage. It covers accidental or intentional damage beyond normal wear and tear. Policies vary, but coverage may include repairs for broken appliances, holes in walls, or vandalism. Some insurers offer optional add-ons for extensive tenant-related damages.
Natural Disasters
Flood Insurance
Covers water damage from flooding, which standard landlord insurance policies typically do not include. Recommended for properties in flood-prone areas.
Earthquake Insurance
Protects your rental property against earthquake-related damages, including structural damage and necessary repairs. Crucial for landlords in high-risk zones.
Is Landlord Insurance Required by Law in America?
Whether landlord insurance is required by law can vary depending on the location and specific circumstances. Let's explore this in more detail:
Is Rental Property Insurance Legally Required in the U.S.?
In most cases, landlord insurance is not legally required in the US. However, if you have a mortgage on your rental property, your lender may require you to have insurance. Additionally, some states and municipalities may have specific requirements for rental properties.
Why Do Landlords Require Tenants to Have Rental Property Insurance?
Landlords want you to have rental property insurance to protect their investment. Insurance can cover damages to the property, loss of rental income, and liability claims. It provides financial security and peace of mind for both landlords and tenants.
Taking Action
Now that you have a better understanding of landlord insurance rates and coverage options, it's time to take action. Protecting your rental property is crucial, and finding the right insurance policy can provide peace of mind and financial security. Start by clicking on any button above to view quotes and get your landlord insurance today!
Frequently Asked Questions
Why is Landlord Insurance more expensive?
Landlord insurance is more expensive because it covers additional risks associated with rental properties, such as tenant-related damages and loss of rental income. These added risks increase the likelihood of claims, leading to higher premiums.
Who gives the best Landlord Insurance?
Several companies offer excellent landlord insurance, including Steadily, State Farm, Liberty Mutual, Allstate, and Progressive. Each company has its strengths, so it's important to compare quotes and coverage options to find the best fit for your needs.
How much is Landlord Insurance in the US?
The cost of landlord insurance in the US can vary widely depending on factors such as location, property value, and coverage type. On average, premiums range from $50 to $200 per month. It's important to get quotes from multiple insurers to find the best rate for your specific situation.