Landlord Insurance

How is landlord insurance different from homeowners insurance?

Your homeowners policy may stop fitting when tenants move in. It may exclude rental losses or limit payments. A longer lease or regularly rented investment or vacation home usually calls for landlord coverage.

Your tenant's renters insurance protects their belongings, not your building. Your policy protects your interest, not their possessions. Many landlords require renters insurance before a lease is signed. Read more about how landlord insurance works.

What do DP-1, DP-2 and DP-3 mean?

These dwelling policy forms offer different protection. Check both the covered causes of damage and how claims are valued.

• DP-1 is the basic form. Claims use actual cash value, meaning replacement cost minus depreciation for age and wear. Replacement cost may be available for an added charge. Our DP-1 guide explains it.
• DP-2 is the broad form. Claims typically use replacement cost, meaning repair or replacement at current prices. Loss of rent coverage may be included.
• DP-3 is the special form. Buildings have open perils coverage, meaning damage is covered unless excluded. Personal property has named perils coverage, meaning only listed causes qualify. See our DP-3 guide.

What does landlord insurance usually cover?

Check the actual coverage list rather than relying on the policy's name.

• The building: Physical damage from fire, lightning, wind, hail and other covered causes.
• Your rental property items: Appliances or equipment you leave for tenant use or maintenance.
• Liability: Protection for certain injury claims involving tenants or guests. Landlord packages may include it, but dwelling policies typically don't. Confirm it's on your policy.
• Lost rental income: Often called fair rental value coverage, this may replace rent while covered damage makes the property unrentable during repairs or rebuilding, usually for a set period.

What coverage gaps should you check?

Ask about these situations before assuming your rental is protected.

• Flood: Don't assume it's included. Most homeowners and renters policies exclude it. Separate flood building and contents coverage typically have separate deductibles. Waiting periods apply, with exceptions. Check whether your lender requires flood insurance.
• Earthquake: Earth movement is a typical DP-3 exclusion. Ask about separate protection or difference in conditions coverage, which can address excluded hazards.
• Vacancy: Ask when an empty rental is considered vacant and what changes then. Theft and vandalism protection may be limited, while liability exposure continues. Ask about a vacancy endorsement, a policy amendment, or vacant home insurance.
• Short-term stays: Traditional landlord coverage mainly suits long-term leases. It may not fit short-term rentals, and Texas regulators say most home policies won't pay for damage or injuries during those stays. Ask specifically about paying guests.

What affects landlord insurance cost?

The Insurance Information Institute's undated guidance says landlord policies generally cost about 25 percent more than a standard homeowners policy. That's a comparison, not a quote for your property.

Pricing factors include age, condition, rebuilding cost, construction materials, location, nearby fire protection and claims history. Coverage choices matter too. Our landlord insurance cost guide explains what to compare.

How do you choose and buy landlord insurance?

Call your agent before renting. Describe the lease arrangement and likely empty periods. Ask whether your homeowners policy can be amended or you need a separate policy.

Choose enough building coverage to rebuild. Compare covered causes, claim valuation, deductibles, liability and rental income protection. Confirm flood requirements with your lender and ask how vacancy changes coverage.

Once you've settled those details, compare landlord insurance quotes using matching coverage requests. Different insurers charge different rates.