What insurance do I need as a landlord?
Quick answer
Most landlords need a landlord policy, sometimes called a dwelling or DP-3 policy, not a homeowners policy. It should cover the building, liability for injuries, and lost rent if the unit becomes unlivable. Add flood coverage separately where needed, and require your tenants to carry their own renters insurance.
Start with a landlord policy, not homeowners insurance
A standard homeowners policy assumes you live in the home. Once you rent it out, most insurers can deny claims filed on that policy. Landlord insurance, often written as a dwelling or DP-3 policy, is built for rentals.
It treats the structure as an income-producing asset and covers tenant-related risks a homeowners policy ignores. If you carry a mortgage, your lender almost certainly requires this coverage to stay in force.
The core coverages every policy should include
Three pieces do most of the work on a landlord policy:
- Dwelling and other structures: repairs or rebuilds the building, garage, or fence after a covered loss.
- Liability: pays legal and medical costs if someone is injured on the property and you are found responsible.
- Loss of rent: replaces rental income while a unit is uninhabitable after a covered event such as a fire.
Confirm your dwelling limit reflects the cost to rebuild, not the market value. The two are rarely the same number.
Coverage worth adding on top
The base policy leaves gaps. Depending on the property and its location, weigh these additions:
- Flood insurance: standard policies exclude flooding, so buy a separate flood policy in at-risk areas.
- Umbrella liability: extends your liability limits well beyond the base policy for a modest premium.
- Ordinance or law: covers the extra cost of rebuilding to current codes after a loss.
- Landlord contents: protects appliances and furnishings you own inside a furnished or partly furnished unit.
Require renters insurance from every tenant
Your policy does not cover a tenant's belongings or their personal liability. Requiring renters insurance shifts those risks off your books and cuts down disputes after a loss. Write the requirement into the lease and ask to be listed as an interested party on the tenant's policy.
Insurance rules and any mandatory coverages can vary by state and local ordinance. Check your state law guide and confirm the specifics with your own insurance agent and counsel.
How Rentari helps
Rentari does not sell insurance, but it keeps the paper trail and money trail insurers ask for in one place. Use E-Sign and Leases to bake a renters insurance requirement into every lease with a court-ready audit trail. Run AI Lease Audit to flag any lease that is missing that clause.
Your premiums are deductible operating costs, so log them with Expense and Receipt Scanning and let Tax-Ready Reporting carry them onto your Schedule E at tax time.
Related questions
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Is landlord insurance tax deductible?
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This article is general information for landlords, not legal, tax, or financial advice. Rules vary by state and city; verify specifics with the official statute or a licensed professional. See our state law guides.