You bought a rental property to build income and maybe even set yourself up for the future—not to pour money into repairs. But all it takes is one bad tenant (or one unexpected disaster) to throw everything off track.
That is, unless you have the right insurance.
Whether you’re already dealing with a mess or just trying to avoid one, landlord insurance can help you stay protected. With the right rental property insurance, you can cover the cost of damage, protect yourself from liability, and keep your investment moving in the right direction.
What Is Landlord Insurance?
If you’re new to renting out property, it’s easy to assume your homeowners insurance still has you covered. After all, you own the house, right? But when you hand over the keys to a tenant, the game changes.
The difference between landlord insurance vs homeowners insurance comes down to how the property is used. Homeowners insurance is designed to protect primary residences—places where you or your family actually live. It typically won’t cover claims that arise while the home is being rented out.
Landlord insurance, on the other hand, is specifically built for property owners who are renting out a home, condo, or apartment. It offers a different set of protections that reflect the unique risks that come with being a landlord—things like lost rental income, natural disasters, and liability protection if someone gets hurt on the property.
If you’re renting—even occasionally—having the right rental property insurance in place can help protect your investment from some very expensive surprises.
What Does Landlord Insurance Cover?
While policies can vary, most include a few key types of coverage that help shield your investment when things go wrong:
Dwelling Coverage
This is the core of your policy. Dwelling coverage helps repair or replace the physical structure of your property after a covered loss, like a fire, windstorm, or certain natural disasters. It typically includes things like the roof, walls, floors, and built-in appliances.
Other Structures
This includes things like detached garages, fences, or sheds. If a storm knocks down your fence or a tree falls on your carport, this part of your policy may cover the cost to fix it.
Personal Property
If you leave items at the property—like appliances, tools, or furnishings—your policy’s personal property coverage may help cover them if they’re damaged by a covered loss. But here’s an important detail: this protection only applies to your property as the landlord. It does not cover your tenant’s personal belongings. Tenants should have their own renters insurance to protect their stuff.
Personal Liability Coverage
If someone gets hurt on your property and believes you’re responsible, personal liability coverage can help pay legal fees, medical bills, and more. It’s a crucial form of liability protection, especially if you’re renting to long-term tenants or have frequent visitors to the property.
Loss of Rental Income
If a covered loss (like a fire) makes your property unlivable, loss of use coverage can help reimburse you for the lost rental income while repairs are being made. That way, you’re not losing money while you’re unable to rent it out.
Does Landlord Insurance Cover Tenant Damage?
It depends on what kind of damage we’re talking about.
Landlord insurance may cover accidental damage caused by a covered risk—like fire, lightning, or a burst pipe. But it won’t cover damage from neglect, intentional acts, or routine wear and tear.
What’s typically not covered:
- Normal wear and tear (like stained carpets or chipped paint)
- Maintenance issues (like a leaky roof or broken water heater)
- Vandalism or theft by tenants
- Flood damage (requires a separate flood policy)
- Damage to your tenant’s belongings
However, these kinds of losses are usually handled through the tenant’s security deposit—and if that’s not enough, you may need to pursue repayment through a civil suit.
For example, if a tenant accidentally starts a grease fire in the kitchen, your landlord insurance policy will likely cover the damage. But if the tenant sprays graffiti on your walls and breaks a window in retaliation for you raising the rent, your landlord insurance likely won’t cover that.
To fully protect yourself, it’s a smart idea to require your tenants to carry renter’s insurance. Their policy may help cover damage they cause—and protect their own belongings in the process.
Does Landlord Insurance Cover Tenant Injury?
It can!
Most landlord insurance policies include personal liability coverage, which can help cover medical bills, legal fees, and even court-awarded damages if a tenant (or guest) is injured on your property and you’re found liable.
For example, if a tenant trips on a broken stair you never got around to fixing, they could claim you were negligent. If they sue, your policy may help cover your defense costs and any settlement—as long as they can show that you knew about the risk and didn’t fix it or warn them.
It also works the other way: if a tenant’s personal belongings are damaged due to a maintenance issue and they take you to court, your policy may cover legal expenses and damages if you’re found at fault.
Of course, every situation is different. That’s why it’s important to review your coverage with a licensed agent and understand the limits of your liability protection.
What Does Landlord Insurance Cost?
There’s no one-size-fits-all price tag for landlord insurance—because no two rental properties (or landlords) are exactly alike. The cost of your policy depends on several factors, including:
- The location of the property (especially its risk of natural disasters like hurricanes or flooding)
- The age, size, and condition of the home
- Whether you’re renting to long term tenants or running short term rentals
- Your chosen types of coverage, deductible, and policy limits
- Any additional coverage you choose, like protection against vandalism or legal expenses
While it can be tempting to shop for the lowest premium, the goal is to cover the cost of a serious loss—not just check a box. A well-structured policy can help protect your income, your property, and your peace of mind.
If you’re unsure what kind of coverage makes sense for your rental, a trusted agent can help you balance protection with affordability.
The Right Insurance Can Protect You From the Wrong Tenant
Being a landlord comes with its share of risks—but with the right insurance, you don’t have to face them alone. A single policy can help protect your property, your income, and your financial future.
At Harry Levine Insurance, we take the time to understand your goals, your property, and your budget so we can help match you with coverage that actually makes sense. No guesswork. No cookie-cutter solutions. Just expert guidance and support when you need it most.
Contact us today to learn more about your options or get a personalized quote. We’ll help you take the next step with confidence.
