The Best Landlord Insurance Companies

As a landlord, you have a ton of responsibilities when managing your rental properties. From finding tenants to collecting rent, there are just so many things to keep track of. Still, one of the most important things you should do as a landlord is ensure you have the right insurance coverage.

I’m not talking about renters insurance. I mean insurance for you, the landlord.

The right landlord insurance policy (i.e., rental property insurance) will help protect your rental property and your personal finances in a disaster or lawsuit. This article will discuss the best landlord insurance companies and what they offer. I’ll also dial in how best to pick a policy for you.

What Are the Best Landlord Insurance Companies?

Here are the best landlord insurance companies, starting with an Insurtech company that specializes in this type of coverage:

1. Steadily

Steadily was founded in 2017 when one of its founders encountered difficulty finding an affordable, simple-to-understand landlord insurance policy after buying a rental property in Chicago.

This proved to be a positive development as it displayed that the people behind Steadily Landlord Insurance are well aware of many property owners’ pain points while seeking quality coverage. They took this insight and established their company to provide top-notch protection at an accessible price.

The online self-serve model employed by Steadily is designed to make it easier for tenants to get tailored coverage without hassle — perfect for those who want their insurance sorted quickly.

Not only does their service cover all 50 states, but they offer great rates considering the wide range of prices associated with different types of coverage. Read our full review of Steadily…

2. Obie

Obie Landlord Insurance is a simple, affordable, and transparent insurance option for landlords and real estate investors. It offers landlord insurance coverage that can help protect rental properties and their owners from potential risks. Obie makes it easy to request a quote and get coverage quickly, so landlords don’t have to spend time deciphering complicated insurance terms.

The company also provides resources to help new landlords understand the basics of landlord insurance. For example, they offer a friendly guide that explains common terms and phrases in landlord insurance. They also partner with Belong to provide support for new landlords.

In addition, Obie has received positive reviews from customers who appreciate their services, ease of use, and affordability. Customers have commented that Obie significantly reduces the amount of time it takes to get landlord insurance, making it an ideal choice for real estate investors who want quick coverage without sacrificing quality or protection.

3. Allstate

Allstate has what’s called a Landlord Package. This covers various perils such as fire, windstorms, hail, falling objects, and water damage from plumbing.

Coverage includes dwelling protection, other structures protection, liability coverage, fair rental income coverage, and premises medical protection. Optional coverages can also be added to the policy for additional protection.

Not covered by Allstate landlord insurance are breakdowns in the rental property, personal property of tenants, floods, earthquakes, and water backups.

4. State Farm

Protect your rental property (home, condo, or apartment units) with State Farm. They have a rental dwelling policy that can provide financial protection for property damage, injury and liability claims, including loss of rental income if such a claim is covered.

They also have a specific condo policy that will protect your property, furnishings and liability. Even in the event of a covered claim, this policy can help you recoup lost rents. They also have a policy for landlords with multiple apartment units.

All provide comprehensive coverage, including property damage, injury claims, liability protection, loss of rental income, and more. Plus, their policies can be customized to fit your needs.

5. Liberty Mutual

Liberty Mutual offers landlord insurance.

Their standard policy includes dwelling coverage – if your property suffers a total loss from the damage, this coverage will take care of repairs; premises liability – if a maintenance worker slips and injures themselves on your property; you’ll be covered for any legal action the person may take against you; wind/hail: if a lousy hail storm causes damage to the windows of your rental property, this will help you get them repaired; fair rental value: if one of your units suffers fire damage and you’re unable to rent it out, this will cover the lost rent while repairs take place.

Optional coverage includes inflation protection: if inflation leads to rising repair costs, this will keep pace with inflation, so you’re covered for a total loss.

6. Farmers Insurance

Farmers Insurance offers a variety of optional coverage options to help protect your rental property. Comprehensive property coverage can help with damage caused by storms or other weather events, while named-peril coverage covers specific risks such as water damage from bursting pipes.

Optional landlord liability coverage can help with hospital bills and lost wages if you are responsible for an injury on the premises. Additionally, loss of rent, personal property, and personal injury coverages may be available to protect your rental property and belongings.

Other structures coverage is also an option to help with anything that isn’t physically attached to the residence.

7. USAA

If you rent out your property, the USAA Landlord Insurance policy can provide coverage for damage caused by most weather-related events, fire, vandalism, and accidental water damage. It can also help to pay for necessary repairs or rebuilding costs.

In addition, it can provide liability coverage if you’re held responsible for someone else’s injuries or property damage. They have coverage for properties with long-term tenants or short-term vacationers on sites such as Airbnb and Vrbo. You must be a member of USAA to take advantage of this policy.

8. GEICO

GEICO Insurance Agency landlord policies include coverage for structure damage, liability, out-of-pocket expenses, and furnishings. Depending on the type of tenant – long-term rental, occasional short-term rental, or frequent short-term rental – you may need a different policy.

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Companies that don’t have a specific landlord insurance policy: Progressive and Nationwide

What is Landlord Insurance – a Refresher

Landlord insurance is a form of property insurance specifically designed to protect landlords from financial losses due to damage to their rental property, theft, or liability claims made by tenants.

Unlike standard home insurance, which may not provide the necessary coverage for income-producing properties, landlord insurance is tailored to protect rental properties and their owners.

While not legally required, it’s highly recommended to have a landlord insurance policy as a risk management strategy to safeguard against potential costs associated with tenants.

For instance, landlord insurance will cover the loss of rental income if the property becomes uninhabitable due to covered damages, which can be especially crucial if rental income is used to cover mortgage payments or other expenses.

How to Choose the Best Landlord Insurance Company for Your Needs

When you’re out there looking through landlord insurance recommendations, there are a few things to consider. First, you want to ensure the company is reputable and has a good track record. Check out online reviews and ratings to understand how other landlords have fared with the company.

Next, you want to ensure the company offers the coverage you need. Different companies offer different coverage levels, so ensure you understand what is included in the policy. You should also look for a company that offers flexible coverage options so you can customize the policy to fit your specific needs.

Finally, you want to make sure the company has competitive rates. Shop around and compare quotes from different companies to ensure you get the best deal.

Finding the right landlord insurance company doesn’t have to be a daunting task. With some research and comparison shopping, you can find the perfect policy for your needs.

What to Look for in a Landlord Insurance Policy

There’s no substitute for doing your due diligence when it comes to landlord insurance. Please ensure the policy you’re eyeing covers not only your rental property but also any outbuildings or other structures. It should also provide coverage for damage inflicted by tenants, including fire damage, vandalism, and water damage.

Additionally, you’ll want to confirm that the policy covers legal fees associated with tenant disputes. These fees can add up quickly, so this protection is essential.

Be sure the policy provides adequate coverage for the total value of your rental property and any potential losses due to tenant-caused harm. As an extra precaution, make sure it includes liability claims due to tenant injuries or damages to your property.

Finally, before signing on the dotted line, ensure the policy has all the additional features you may require – like loss of rent coverage and protection against tenant-inflicted damage to your personal belongings. That way, you can confidently protect your investment and have peace of mind when renting out your property.

The Case for Landlord Insurance – 3 Perspectives

Do you really need Landlord Insurance? Here’s an argument for the use of landlord insurance from three different perspectives:

The financial perspective: Imagine you’re a landlord and one day, a freak storm hits your rental property causing major damage. Without landlord insurance, you would be left to bear the financial burden of repairs and potentially costly legal fees. But with landlord insurance, you can sleep easy knowing that your assets are protected and you won’t have to break the bank to get your property back in tip-top shape.

The tenant perspective: For tenants, living in a rental property can sometimes feel like being on a rollercoaster ride. But with a landlord who is insured, tenants can relax and enjoy the ride, knowing that any bumps in the road will be smoothed out quickly and efficiently. Without insurance, tenants may be left wondering if their landlord can afford to make necessary repairs, leading to uncertainty and stress.

The societal perspective: Landlord insurance can be seen as the “glue” that holds communities together. Without it, rental properties may fall into disrepair, leading to blight and negatively impacting the community as a whole. But with insurance, landlords are more likely to make necessary repairs, keeping properties safe and attractive and contributing to a healthier, more vibrant community.

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How to Save Money on Landlord Insurance

There are several ways to save money on landlord insurance:

  1. Bundle your policies: If you have multiple properties, consider bundling your landlord insurance policies with one insurance company. This can often result in a discounted rate.
  2. Increase your deductible: Increasing your deductible (the amount you pay out of pocket before insurance coverage kicks in) can lower your premium. However, remember that a higher deductible means more financial risk for you in case of a claim.
  3. Maintain a good claims history: Insurance companies often offer discounts to landlords with a good history, meaning they haven’t filed many claims in the past.
  4. Implement safety measures: Some insurance companies may offer discounts for landlords who have implemented safety measures such as smoke detectors, fire extinguishers, and deadbolts.
  5. Shop around: Compare rates and coverage from different insurance companies to find the best deal. But hey, you’re already on the best landlord insurance comparison site. So just shop here.
  6. Optimize coverage: Review your coverage annually and ensure it aligns with your needs and budget. Sometimes you may find that you’re paying for coverage you don’t need.

It’s important to remember that while saving money on insurance is essential, it’s even more critical to ensure you have enough coverage to protect your rental properties and yourself in case of any accidents or damages.

Comparing the Best Landlord Insurance Companies: What to Consider

When choosing the best landlord insurance company, there are a few things to consider. First, you want to ensure the company is reputable and has a good track record. You should also look at the coverage they offer and ensure it meets your needs. Additionally, comparing the policy’s cost would be best to ensure you’re getting the best deal.

When it comes to reputation, you want to ensure the company has a good track record and is well-respected in the industry. You can read reviews online or ask other landlords for their opinion.

Next, you want to make sure the coverage offered meets your needs. You should look at the types of coverage offered, such as liability, property damage, and rental income protection. You should also make sure the policy covers any additional costs you may incur, such as legal fees or repairs.

Finally, comparing the policy’s cost would be best to ensure you’re getting the best deal. You should look at the premiums, deductibles, and any additional fees. You should also ensure the policy is affordable and fits your budget.

By comparing the best landlord insurance companies, you can ensure you’re getting the best coverage for your needs at the best price.

Q&A

1. What is landlord insurance?

Landlord insurance is a type of insurance policy that provides financial protection for landlords in the event of a tenant-related loss. It typically covers damage to the property caused by tenants, legal fees, and other costs associated with tenant disputes.

2. What does landlord insurance cover?

Landlord insurance typically covers damage to the property caused by tenants, legal fees, and other costs associated with tenant disputes. It may also cover loss of rental income due to tenant default, liability for injuries to tenants or guests, and damage to personal property owned by the landlord.

3. Who needs landlord insurance?

Landlord insurance is recommended for anyone who owns a rental property whose needs aren’t met by a traditional homeowners insurance policy. It can provide financial protection in the event of a tenant-related loss and help cover the costs associated with tenant disputes.

4. How much does landlord insurance cost?

The cost of landlord insurance varies depending on the type of coverage and the property size. Generally, the cost of landlord insurance is based on the property’s value, the number of tenants, and the type of coverage.

5. What are the best landlord insurance companies in Texas, Florida, and California?

The best landlord insurance companies vary depending on the type of coverage and the property size. Some top-rated companies include Steadily, Allstate, Farmers, Liberty Mutual, and USAA.

6. What is the most basic insurance policy available for rental properties?

The most basic policy available for rental properties is called a “landlord insurance policy.” It typically covers legal liabilities, physical damage to the property, and lost rent due to tenant defaults. It can also include additional coverage, such as living expenses, if the dwelling becomes uninhabitable due to unforeseen circumstances.

7. What is a landlord insurance policy called?

Allstate calls theirs a “Landlord Package” policy. GEICO calls theirs simply Landlord Insurance. Some insurance companies might not have a specific landlord insurance offering and will try to pigeonhole you into getting a homeowners insurance or condominium insurance policy (if that’s what you have). These policies may or may not be a good fit for you.

8. Is landlord insurance different from property insurance?

Conclusion

The Best Landlord Insurance Companies offer various coverage options to meet the needs of landlords. They provide comprehensive property damage, liability, and rental income protection coverage. They also offer additional coverage options such as tenant screening, legal defense, and more.

With the right coverage, landlords can protect their investments and ensure their rental properties are safe and secure.

Avatar About Philip Taylor, CPA

Philip Taylor, aka "PT", is a CPA, blogger, podcaster, husband, and father of three. PT is also the founder and CEO of the personal finance industry conference and trade show, FinCon.

He created Part-Time Money® back in 2007 to share his advice on money, hold himself accountable (while paying off over $75k in debt), and to meet others passionate about moving toward financial independence.

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