If you rent out a house that is still insured on a homeowners policy, you may not be insured at all. Homeowners insurance is written for a home you live in. Once tenants move in, an insurer can deny a claim because the property is not owner-occupied, and cancel the policy when it finds out.
Landlord insurance, usually sold as a dwelling fire policy, is the fix. It protects the building, pays your lost rent while it is being repaired, and covers your liability as a landlord. It typically costs a bit more than a homeowners policy for the same house, often estimated at 15% to 25% more, because tenants change, properties sit empty and you are not there to spot problems early.
Last reviewed: October 2026 · SmartCoverage Editorial Team · How we research
DP-1, DP-2, DP-3: the three dwelling forms
Landlord policies come in three standard forms. The names look technical, but the difference is simple: how many causes of damage are covered and how claims are paid.
Ask for DP-3 first. The price difference is usually small next to what a DP-1 would leave out, such as a burst pipe or a falling tree. If an insurer will only offer a DP-1 on your property, that tells you something about how it sees the risk, and it is worth getting other quotes.
What to ask for, based on your rental
Not every landlord needs the same policy. A furnished apartment rented for three months, a condo on a long lease and a cabin on Airbnb each need something different. Use the builder below, then take the checklist with you when you speak to an agent.
Answer four questions. You get the policy type to ask for and a checklist to take to your agent. Tick items off as you confirm them.
General guidance only. Policy names and options vary by insurer and state; confirm every item in writing.
What landlord insurance does not cover
Your tenants’ belongings. If a fire destroys the building, your policy pays to rebuild it, not to replace your tenant’s furniture or laptop. That is what renters insurance is for, and it also gives the tenant liability coverage, which can protect you if their negligence causes damage. Requiring it in the lease is common and inexpensive for tenants; our guide to the best renters insurance companies is a useful link to share with them.
Wear, neglect and slow damage. A roof that fails from age, a leak that rots the floor over months or damage from pests is a maintenance cost, not an insurance claim. Regular inspections between tenancies are the best defense, and many leases allow them with notice.
Damage your tenant causes on purpose. Coverage for intentional damage by tenants varies a lot. Some policies cover vandalism by tenants, some cover it only as an add-on and many exclude it. The security deposit and a court claim are often the main remedies, so ask specifically how your insurer handles it.
Flood and earthquake. As with homeowners policies, these need separate coverage. Our guide to what homeowners insurance covers explains these and other standard exclusions, most of which also apply to dwelling policies.
Unpaid rent. Loss of rent coverage pays only when a covered event, such as a fire, makes the property unlivable. It does not pay if a tenant simply stops paying. Separate rent guarantee products exist, but they are not part of a standard policy.
Short-term rentals need their own answer
If you rent through Airbnb or Vrbo, a standard landlord policy may not apply, because many are written for leases of six or twelve months. Short stays look more like a hotel than a tenancy to an insurer.
Airbnb includes two protections for hosts: Host damage protection, up to $3 million for damage to your home and contents caused by guests, and Host liability insurance, up to $1 million if a guest is hurt. Airbnb itself says the damage protection is not insurance. It has its own claims process and conditions, and it does not replace a policy that covers fire, storms or the months when no guest is staying.
The safest route is a policy or endorsement written for short-term rentals, from your current insurer if it offers one or from a specialist. Be completely open about how you use the property: an undisclosed short-term rental is one of the most common reasons landlord claims are denied.
Liability: the part that can cost the most
Property claims are capped by the dwelling limit you choose. Liability claims have no natural ceiling. A tenant who falls on a broken step or a guest injured in a pool can bring a claim far larger than the property is worth, and a landlord’s duty to maintain a safe property makes these claims easier to bring.
Most landlord policies start at $100,000 or $300,000 of liability. If you own several rentals or a property with a pool, consider a landlord umbrella policy, which adds $1 million or more on top of all of them. Many investors also hold rentals in an LLC. That can protect personal assets in some situations, but it is a legal question, not an insurance substitute, and the policy must name the LLC correctly to pay a claim. Talk to an attorney about the structure and make sure your agent knows who owns the property.
Where to buy it and what it costs
Most large insurers sell landlord policies through their agents, often as a “rental dwelling” policy, and many give a discount if your own home and car are with them too. See our ranking of the best homeowners insurance companies for how they compare on price and claims service; the same strengths usually carry over. Several online insurers now focus only on landlords and can quote a single-family rental in minutes. Independent agents are especially useful if you own several properties in different places.
Prices follow the same factors as homeowners insurance, with location first. Our state price guide gives a sense of the baseline where your rental is. On top of that, insurers look at the age and condition of the building, the number of units, how long tenants typically stay, vacancy and your claims history. Newer roofs, updated systems and smoke and water sensors all help, and so does a higher deductible if you hold cash reserves for the property.
Before signing, check the insurer’s complaint record in the NAIC Consumer Insurance Search and confirm in writing how it defines vacancy, whether it covers your type of rental, and what it pays for lost rent and for how long.
Keep it current
A landlord policy is easy to set up and forget. Review it every year at renewal and whenever something changes: you move out and start renting the house, you switch from long-term to short-term rentals, you renovate, or the property will be empty for more than a month or two. Each of those can change what your insurer expects, and a quick call before the change is far easier than a disputed claim afterward.
This guide gives general information, not personal insurance, legal or tax advice. Coverage and terms vary by insurer and state. Speak to a licensed agent and, for ownership structures, an attorney.