The Most Common Landlord Insurance Claims & How To Avoid Them

Landlord insurance protects owners who rent out apartments, condos, and houses, and it costs about 20 to 25 percent more than a homeowners policy because rentals carry more risk. Knowing which claims happen most often helps Illinois landlords in Elgin, Huntley, and across Kane and McHenry County prevent losses before they start. Here are the most common landlord insurance claims and practical ways to avoid them.

Why is loss of rent the most common claim?

Loss of rent is consistently one of the largest categories of landlord claims, accounting for more than half of all filings in some reporting years. It happens when a covered event, such as a fire or major water damage, makes a unit unlivable and stops your rental income while repairs are made. For owners relying on that rent to cover the mortgage, the impact is immediate.

To reduce the risk, maintain the property well, address small problems before they become major losses, and screen tenants carefully to avoid damage that forces a unit offline. Make sure your policy includes loss of rental income coverage so the income is replaced when a covered loss does occur. Our guide on whether landlord insurance covers loss of rent explains how it works.

How can you prevent water damage claims?

Water damage is one of the most frequent and expensive landlord claims, especially in Illinois where winter freezes burst pipes and spring storms overwhelm drains. A small leak left unaddressed can rot floors, ruin drywall, and trigger mold, turning a minor repair into a major claim.

Prevention is straightforward. Insulate pipes before winter, keep gutters and downspouts clear, service the water heater and HVAC, and ask tenants to report leaks immediately. Consider adding sewer backup coverage, which standard policies often exclude. For the bigger picture, see key tips for preventing water damage and confirm what coverage you need as a landlord.

What about fire, theft, and vandalism?

Fire, theft, and vandalism are classic property claims that can cause severe damage. Vacant units are particularly vulnerable to break-ins and malicious damage, and kitchen fires remain a leading cause of loss in rental housing. Each of these can take a unit out of service for weeks or months.

Lower the odds with smoke detectors and fire extinguishers in every unit, good exterior lighting, secure locks, and prompt re-rental or monitoring of vacant properties. Document the property's condition with photos so claims go smoothly. Coverage for malicious damage is worth reviewing, as we cover in whether landlord insurance covers malicious damage, and our habitational and landlord insurance team can confirm your limits.

How do you avoid liability and injury claims?

Liability claims arise when a tenant or visitor is injured on your property, such as a slip on an icy walkway or a fall on a broken stair. These claims can be costly because they involve medical bills and potential legal fees, and Illinois winters make slip-and-fall incidents especially common.

Reduce the risk by keeping walkways, stairs, and railings in good repair, clearing snow and ice promptly, and fixing hazards as soon as they are reported. Adequate liability limits, and often an umbrella policy, protect your personal assets if a claim does occur. For context on tenant-related property issues, see whether landlord insurance covers tenant property damage.

What is the best way to keep claims low overall?

The landlords who file the fewest claims share a few habits: they screen tenants thoroughly, inspect properties regularly, fix problems quickly, and document everything. Preventive maintenance is far cheaper than a claim, and a clean claims history keeps your premiums lower over time.

Pair good management with the right coverage and an agent who re-shops your policy each year. As an independent agency, we compare landlord coverage across more than 20 A-rated carriers with no agency fees, so you are protected without overpaying. For more on managing costs, read typical landlord expenses and how to lower them.

Work With Pro Insurance Group

Pro Insurance Group is an independent insurance broker based in Elgin, IL, serving clients across Illinois and 40+ states. Because we shop 20+ A-rated carriers, we put the whole market to work on your rate, and we re-shop every renewal so your premium never quietly creeps up. No agency fees, ever.

Get My Free Landlord Quote

Prefer to talk it through? Call 833-776-4671 or text "quoteme" to 312-878-9416.

Frequently asked questions