Landlord Insurance
Plain English
Landlord insurance covers a home you rent out: the building, appliances or furniture you leave for tenants, your liability as the owner, and often rent you lose if a covered loss makes it unlivable. Your tenants' belongings fall under their own renters insurance. It usually costs more than homeowners insurance.
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Definition
Landlord insurance is a property policy for a home rented to tenants, generally covering the structure, the landlord's property left on site, liability, and often lost rental income after a covered loss. It doesn't cover the tenant's belongings. It's sometimes called a dwelling fire policy, and typically costs more than a homeowners policy.
Why It Matters
A homeowners policy is priced for the owner living there. Once a home is rented long-term, the risks change, and a landlord policy is usually what's needed.
Real-World Example
Imagine a rental house is damaged by a covered fire. The landlord policy pays to repair the structure and the landlord's refrigerator and washer, less the deductible, and if it includes fair rental value, the rent lost while repairs take place. The tenant's clothes and furniture are claimed on the tenant's renters policy.
Common Misconceptions
- Keeping a homeowners policy on a home rented long-term.
- Assuming the landlord policy covers tenants' belongings.
- Assuming lost rent is included without checking.
Key Takeaways
- The Insurance Information Institute: for long-term rentals you need a landlord policy, which typically costs "about 25 percent more" than homeowners insurance.
- It protects "personal property you may leave on-site for maintenance or tenant use, like appliances, lawnmowers, and snow blowers."
- "Your tenant's personal possessions are not covered under your policy," per the Institute.
- Coverage for lost rental income is often included or available; New Jersey's regulator describes it as fair rental value.
Frequently Asked Questions
Do I need landlord insurance to rent a room in my home?
Not necessarily; renting part of a home you live in is often handled differently. See the renting-a-room lesson.
What's it commonly confused with?
Renters insurance, which the tenant buys for their own belongings and liability.
Related Terms
Related Coverages
- Landlord Insurance
Related Scenarios
Explore the rest of the Landlord Insurance category.
Browse Landlord Insurance terms →Sources
The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- Coverage for renting out your homeInsurance Information Institute (Triple-I)
Educational information, not advice: This page is for general education only, not legal, financial, or insurance advice. Actual coverage, discounts, and requirements depend on your policy’s wording, your insurer, and the laws of your state. Confirm specifics with your own insurer or a licensed agent before making a decision. Insurpedia does not sell insurance and does not recommend specific insurers.