In this article:

• What does landlord insurance cover?
• What does landlord insurance not cover?
• How much does landlord insurance cost?
• Do I need landlord insurance?
• What is the best insurance for landlords?
• What other types of property insurance should I know about?

As a landlord, it's crucial to protect your investment — and that likely requires a different insurance policy than an owner-occupied home would need. 

Landlord insurance, also called rental property insurance, is a policy that covers homeowners who are renting out their house or condo. Here's what you need to know before renting out your property.

Note: This guide is for informational purposes only. Zillow Group, Inc. does not make any guarantees about the sufficiency of the information in or linked to from this guide, or that it’s compliant with current, applicable or local laws. Landlord-tenant laws change rapidly and may be regulated at the federal, state and local levels. This resource is not a substitute for the advice or service of an attorney; you should not rely on this resource for any purpose without consulting with a licensed attorney in your jurisdiction.

What does landlord insurance cover?

Landlord insurance generally provides coverage for physical damage to your rental property's structure that's caused by fire, lightning, wind, hail, ice, snow and other causes of major damage. While landlord insurance policies will vary, some may include coverage for:

Property damage. If your rental property or other structures on the property (such as a shed or detached garage) are damaged or lost, your landlord insurance may cover repair or replacement.

Personal liability protection. This is a major differentiator from a standard homeowner's insurance policy. Landlord liability insurance covers you if a tenant or another person makes a claim against you for injuries sustained on your rental property.

Loss of rental income. If your property is deemed uninhabitable due to a covered loss and your tenant is forced to move out, this rental property insurance option may reimburse you for income lost during this time.

Personal property. Should you leave personal property, such as appliances or a lawn mower, on-site, you may be able to get coverage to protect those items.

What does landlord insurance not cover?

Generally, a landlord insurance policy doesn’t cover a tenant's personal property, normal maintenance or wear and tear. Depending on your policy, your landlord insurance may also exclude coverage for damage caused by a flood, earthquake or water/sewer backup. Talk with your insurance provider about what coverage options are available for your rental property.

How much does landlord insurance cost?

Many landlords pay more for landlord insurance than they would if they occupied the property and carried a standard homeowners insurance policy. The difference may be minimal, or it may be noticeably higher — it all depends on your insurance provider and the type of coverage you choose. 

Some factors that may affect the cost of your landlord insurance policy:

• The location of your rental property
• The number of rental properties you're insuring
• The condition and value of your rental property
• Any optional coverage added to your landlord policy

Do I need landlord insurance?

While a landlord insurance policy may not be required by law, it will typically provide coverage for the types of claims that arise when a tenant is occupying the property. Sometimes, standard home insurance for a rental property will not cover these claims, so it's a good idea to speak with your insurance agent and a local lawyer to determine whether you need landlord insurance.

What is the best insurance for landlords?

The best insurance for your rental property will depend on the coverage you want. Consider talking with multiple insurance companies to see which coverage and cost option is the best for your rental property. Each situation will be different, so there isn't one best landlord insurance policy for everyone.

What other types of property insurance should I know about?

Aside from landlord insurance, there are two other types of insurance that may benefit you and your tenant:

Homeowners insurance is a type of property insurance that covers the residence you’re occupying and is generally required for properties with home loans.

Renters insurance is a policy that protects the tenant and their belongings when they're living in a rental property.

Landlord insurance vs. homeowners insurance

Once you rent out a room or an entire property, homeowners insurance may not cover any of your personal belongings that remain in the unit or your liability if a tenant or their guest is injured on the property. Landlord insurance will generally cover these situations.

Landlord insurance vs. renters insurance

While landlord insurance will generally cover your personal property in the rental, such as appliances, it typically does not cover any tenant property that's damaged or stolen. It's always a good idea to require renters insurance in your lease agreement and educate your tenants on the benefits of renters insurance.

For more articles, tips and trends about being a landlord and managing properties, visit our Rentals Resource Center.