Landlord insurance is a special type of insurance that property owners who rent out apartments or condos to tenants must have. Traditional homeowners insurance does not cover rented spaces and only covers the owner-occupied property.
It is crucial to understand landlord insurance and the coverage it provides if you have rental properties.
Insurance for landlords
Landlord insurance covers rentals. Although it is very similar to homeowners insurance there are some key differences. These are the coverages included in a standard landlord policy.
- Home insurance: Home insurance protects the building’s exterior from certain perils like fire, falling objects, and wind damage.
- Insurance for other structures: Insurance for other structures covers detached structures such as fences or walkways.
- Personal Property Insurance: Personal Property insurance covers equipment used for maintaining the rental property.
- Liability Insurance: liability insurance covers the legal fees of the landlord if a tenant is injured in a common area, such as a laundry room or stairwell. The landlord can be held responsible.
Landlord insurance doesn’t cover everything. This insurance does not cover tenant’s personal possessions, maintenance costs, or equipment breakdown costs. This insurance does not cover partially rented properties through services like Airbnb.
The best landlord insurance companies
Although landlord insurance is simple to find, not all landlord insurance providers are created equal. These are the top landlord insurance companies:
Allstate: The best for customizing coverage
| Pros | Cons |
|---|---|
| Policies that are less expensive | Very few discounts |
| Many add-on coverage options | No online quotes |
| Useful online tools and resources |
Allstate has been a popular choice for landlord insurance. The company has excellent financial strength, with an A+ rating from AM Best is a well-known company that offers comprehensive coverage at a reasonable price.
Allstate is our top recommendation to landlords looking for customizable coverage. Allstate customers have the option to purchase vandalism protection, burglary protection, premises medical protection, fair income protection, and building code insurance in addition to their standard coverage.
USAA: The best for military personnel
| Pros | Cons |
|---|---|
| Great customer service | Only for veterans and military personnel |
| Policies that are less expensive | Very few discounts |
| Homesharing coverage available |
USAA insurance has a high rating, scoring 900 out 1000 in J.D. Power’s 2020 U.S. Insurance Shopping Study. A++ is also a high rating for financial strength from AM Best. USAA’s only selling insurance to veterans and active duty military personnel is the only problem.
USAA coverage is available to landlords who qualify. This includes income replacement coverage and homesharing coverage. USAA landlord insurance policies include a 25% discount on TransUnion’s SmartMove tenant screening program, which aids landlords in finding reliable tenants.
American Family: The Best for Enhanced Liability Coverage
| Pros | Cons |
|---|---|
| You can add additional liability coverage | The coverage is very basic |
| Policies that are less expensive | Limited availability |
| Highly rated on the basis of third-party reviews |
American Family insurance receives high marks all around. J.D. rated the company 878 out 1000. According to the 2020 U.S. Insurance Shopping Study, Power rated the company 878 out of 1,000. It has an A rating by AM Best which indicates excellent financial strength. American Family currently offers coverage in 19 states.
For landlords looking to add liability insurance to their portfolio, we recommend American Family. This coverage add-on covers liability up to $2,000,000, which can be used for tenant medical bills, legal defense, and lawsuits.
State Farm: Best for condo owners
| Pros | Cons |
|---|---|
| Policies that are less expensive | Below-average customer service reviews |
| Condo owners get specific coverage | |
| There are many discounts available |
State Farm has been a major insurance provider in the country. J.D. rates the company 860 out 1000. The company is rated 860 out of 1,000 in J.D. Power’s 2020 U.S. Insurance Shopping Study. This is higher than average. State Farm has a superior financial strength and is rated AM Best with an A++ rating.
State Farm’s landlord coverage is the best choice for condo owners. State Farm’s Rental Condo Unit Owners Policy provides personal property coverage, liability coverage, and income protection. For an additional fee, landlords can purchase loss assessment and inflation protection coverage.
Liberty Mutual is the best for discount
| Pros | Cons |
|---|---|
| Great discount options | More expensive policies |
| Online quotes | Basic coverage |
Liberty Mutual insurance has mixed ratings. J.D. rates the company below average. According to the NAIC Customer Complaint Index, Power has more customer complaints than average. The company’s financial strength is excellent, earning it an A rating from Best.
Individuals looking to reduce their premium and get discounts on Liberty Mutual landlord insurance are a good choice. Liberty Mutual provides savings by bundling home insurance and rental property insurance. You can also be claims-free for a minimum of five years. Get a quote before your existing landlord policy expires.
Geico: The best for affordable policies
| Pros | Cons |
|---|---|
| Less expensive premiums | Basic coverage |
| Online quotes | Below-average customer service ratings |
| Condos and apartments covered |
Geico has a strong reputation as an insurance provider. J.D. According to J.D. Power’s 2020 U.S Geico was rated by customer satisfaction Geico also has great financial strength, with an A++ rating from AM Best.
Geico’s reputation for cheap policies is one of its main reasons why it is so popular. Geico is a good choice for landlords looking for affordable insurance policies. Although landlord coverage is very basic, there are options available for apartment and condo owners.
How to find the best landlord insurance
The first step to finding the best landlord insurance is choosing the right company. There are many other things you need to consider when searching for providers. These are some tips to help you find the best landlord insurance.
- Do your research: Don’t settle for the first company that you find.
- Choose coverage: After identifying several potential providers, obtain rate quotes and compare them to find the best rates.
- Check for discounts: Many landlord insurance companies offer discounts which can lower your premium. You should look for providers who offer multiple discounts that you may be eligible for.
- Ask for a recommendation: You can ask other property owners to recommend an insurance company. The best way to find an insurance company is by word of mouth.
Questions frequently asked
Do landlords need insurance?
Landlord insurance is not required by law. It is an excellent investment for property owners. It provides legal and financial protection in case of a covered loss.
What is the cost of landlord insurance?
Cost of landlord insurance depends on many factors, including the state, age of the applicant, condition of the building and the amount of coverage required. Landlord insurance is usually more expensive than standard home insurance because it offers greater coverage.
Which is the best company for home insurance?
Every person will have a different best home insurer. It all depends on the homeowner’s needs, their values, how much they spend, where they live, and what kind of coverage they require. Amica, Allstate and Travelers are some of the most highly rated providers.