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PERSONAL INSURANCE · 40+ STATES
Landlord Insurance
Your homeowners policy stops covering the property the day a tenant moves in. Landlord insurance protects the building, your liability as an owner, and the rent you lose when a unit cannot be lived in. We are licensed in 40+ states and shop 20+ A-rated carriers, so one broker can cover your whole portfolio even when the properties are not in the same state.
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Quick Answer: Landlord insurance costs about $1,478 per year on average nationally, roughly 15 to 25 percent more than a comparable homeowners policy. It covers the building, your liability as the owner, and lost rental income. It does not cover your tenant's belongings, which is what renters insurance is for. Premiums vary widely by state, from roughly $892 a year in the least expensive states to $2,561 in the most expensive.
If you rent out a property, a standard homeowners policy will not respond to a claim. Insurers price homeowners coverage assuming you live there. Once a tenant moves in the risk changes, and so does the policy you need. Landlord insurance, often written as a dwelling fire or DP-3 policy, is built for tenant occupied property.
We are an independent brokerage licensed in more than 40 states. If you own rentals in more than one state, you do not need a different agent in each one.
Renting out a property?
Tell us about it and we will shop it across 20+ A-rated carriers. Same broker whether the property is down the street or three states away. No agency fees, ever.
Get My Free QuoteStart with how much you own
The right policy depends on the size of your portfolio. Pick the one that matches you.
One rental: single family or condo
A DP-3 dwelling fire policy with liability and loss of rents. The most common setup for a first rental or an inherited home you decided to keep.
2 to 4 units: duplex, triplex, fourplex
Still personal lines in most cases, but limits and loss of rents need to be set per unit. An owner occupied unit changes the rating.
5+ units or a portfolio
This moves to our commercial habitational insurance program. Usually cheaper per unit than separate policies, and it schedules every building on one renewal, in any state.
What does landlord insurance cover?
A landlord policy is built from four core parts. Most owners are underinsured on the last two.
1. The building
Fire, wind, hail, lightning, vandalism and most sudden water damage. Insure to rebuild cost, not market value and not your mortgage balance.
2. Owner liability
Defense and damages if a tenant or guest is injured on the property. Pair it with a personal umbrella policy once you own more than one rental.
3. Loss of rental income
Pays the rent you lose while a covered claim makes the unit unlivable. How loss of rents actually works.
4. Owner-kept property
Appliances, lawn equipment and furnishings you own inside the rental. A furnished rental needs this limit set deliberately.
The add-ons most landlords should be quoting (and usually are not)
Water and sewer backup. Excluded by default on almost every policy. In older housing stock served by combined sewers this is one of the most common claims we see. Add it.
Ordinance or law. Pays the extra cost of rebuilding to current code. On a property built before roughly 1990 this gap can run into six figures after a serious fire.
Vandalism and malicious mischief. Frequently restricted once a property is vacant beyond 30 or 60 days. See vacant home insurance if you are between tenants or renovating.
Equipment breakdown. Covers the furnace, water heater and central air when they fail from a mechanical or electrical cause rather than a covered peril. Cheap to add, and it is the claim tenants call about first.
Flood. Never included. If the property sits in any mapped flood zone you need a separate flood policy, and in coastal states wind and hail may be excluded too.
Named storm and hurricane deductibles. In Gulf and Atlantic coastal states these are percentage deductibles, not flat dollar amounts, and they change the real cost of a claim dramatically.
What landlord insurance does not cover
This is where most disputes start, so it is worth being blunt about it.
| Not covered by your policy | What actually covers it |
|---|---|
| Your tenant's furniture, electronics and clothing | The tenant's own renters insurance. Require it in the lease and ask to be named as an interested party. |
| Normal wear and tear, and deferred maintenance | Nothing. This is an operating cost, not an insurable loss. |
| Intentional tenant damage in many policy forms | The security deposit first. Some carriers will add vandalism by tenant. Read the detail here. |
| Unpaid rent from a tenant who stops paying | Loss of rents only responds after a covered property loss. Rent default needs a separate rent guarantee product. |
| Flood and earthquake | Separate flood or earthquake policies. |
| Short term rental activity (Airbnb, VRBO) | A short term rental policy. A standard landlord form can be voided by nightly rentals. Airbnb and landlord insurance. |
How much does landlord insurance cost?
Premium tracks your dwelling limit more than anything else, then your state. These are national planning ranges, not quotes.
| Dwelling limit | Typical annual premium |
|---|---|
| $100,000 | $500 to $1,000 |
| $300,000 | $900 to $1,800 |
| $500,000 | $1,400 to $2,800 |
| $1,000,000+ | $2,500 to $5,000+ |
Estimates only. Your premium depends on state, construction, roof age, protection class, claims history, deductible and how the property is occupied.
State matters as much as limit. The national average is about $1,478 a year, but state averages run from roughly $892 to $2,561. For the full breakdown by property type and the eight factors that move your rate, see our landlord insurance cost guide.
Landlord vs homeowners vs renters insurance
| Landlord | Homeowners | Renters | |
|---|---|---|---|
| Who buys it | Property owner | Owner occupant | Tenant |
| Building | Covered | Covered | Not covered |
| Occupant belongings | Not covered | Covered | Covered |
| Lost rent | Covered | Not covered | Not covered |
| Typical cost | 15 to 25% above homeowners | Baseline | Lowest |
Where we write landlord insurance
Pro Insurance Group is licensed in more than 40 states. That matters more than it sounds for rental property, because investors rarely own everything in one place, and rules and pricing change hard at the state line.
Out-of-state investors
Own in one state and live in another? That is normal for us. One broker, one renewal calendar, one point of contact for the whole portfolio.
State rules differ
Landlord-tenant law, required disclosures and what a carrier will write vary by state. So does whether wind, hail or named storm is even included.
Carrier appetite is regional
A carrier that loves your Midwest duplex may not write a coastal or wildfire-exposed property at all. We know which markets go where.
Illinois is our home market
Offices in Elgin and Huntley. See Illinois landlord insurance for state detail.
Not sure your current policy is written correctly?
Send us your declarations page. We will tell you exactly where the gaps are, free, with no obligation to move the policy.
Get My Free Policy ReviewWhat Our Clients Say
Why landlords work with Pro Insurance Group
Licensed in 40+ states
One broker for the whole portfolio, even when the properties are not in the same state. No juggling an agent per market.
We are a broker, not a carrier
20+ A-rated carriers compete for your property instead of one company telling you its price.
We re-shop every renewal
Loyalty penalties are real. We re-market your policy instead of letting it drift up each year.
We grow with your portfolio
One rental today, an apartment building later. Same team, no starting over.
Landlord Insurance FAQ
What does landlord insurance cover?
Landlord insurance covers four things: the building itself against fire, wind, hail and vandalism; your liability as the owner if a tenant or guest is injured; the rental income you lose while a covered claim makes the unit unlivable; and property you own inside the rental such as appliances. It does not cover your tenant's personal belongings.
Do I need landlord insurance?
If you rent the property to someone else, yes. Most states do not require landlord insurance by statute, but a homeowners policy will not pay a claim on a tenant occupied property, and nearly every mortgage lender requires proof of coverage on a rental. Renting to a family member counts as a rental to most carriers.
Can one policy cover rentals in different states?
Coverage is written per property and per state, so each rental has its own policy or is scheduled on one commercial program. What you do not need is a different agent in every state. We are licensed in more than 40 states, so one broker can place and service the whole portfolio on a single renewal calendar.
Is landlord insurance more expensive than homeowners insurance?
Yes, typically 15 to 25 percent more than a comparable homeowners policy. Tenant occupied property carries higher liability and claim frequency, and the landlord form adds coverages a homeowners policy does not include, such as loss of rental income.
One Broker for Every Rental You Own
Licensed in 40+ states, appointed with 20+ A-rated carriers. We shop each property, re-shop at every renewal, and set coverage the way an owner actually needs it. No agency fees, ever.
Get My Quote Call 833-776-4671Call 833-776-4671 or text "quoteme" to 312-878-9416.
DR
Reviewed by Dave Rysavy
VP, Personal Lines · Pro Insurance Group. Dave places personal lines and rental property coverage for owners across 40-plus states, and coordinates the hand-off to our commercial team when a portfolio outgrows a personal policy.
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