Rental property insurance
Rental Property & Real Estate Investors
Landlord and Dwelling Fire policies for single rentals, multi-unit buildings, and growing portfolios.
A rental is not your own house with a tenant in it. It runs on a Dwelling Fire policy, often sold as a Landlord Protector, and the coverage that matters most is the part protecting your income and your other assets rather than the building itself.
Real estate investors are a large part of this agency's book, and the same handful of gaps turn up almost every time a portfolio comes in for review.
The checklist
What gets confirmed on a rental property policy
Liability limits, and an umbrella above them
Liability on a landlord policy is usually capped at $500,000 per loss, and most investors walk in carrying $300,000. An umbrella starts at $1 million and can run as little as about $300 a year.
Loss of rents matched to actual rent
The most common mistake is a loss of rents limit that no longer matches what the unit rents for today. This is the coverage that keeps the loan payment made while the unit is uninhabitable.
Sewer, drain, and sump pump backup
Averages $7,000 on a bi-level and $11,000 on a rambler in the Fargo–Moorhead market. Worth evaluating per property rather than assuming it across the portfolio.
Special Form rather than Basic or Broad
Good, better, best. Special Form responds to more causes of loss and generally at replacement cost. The condition of the property can limit which form you qualify for.
Dwelling limit at rebuild cost, not purchase price
You may have acquired the property for $75,000, but rebuilding it could cost $230,000. Those are different numbers and only one of them settles a claim.
Vacancy and renovation periods
Most policies restrict coverage once a unit sits vacant past a set number of days, and a gut rehab often belongs on a builder's risk policy instead.
Certificates, mortgagee changes, and closings
Lenders, property managers, and title companies need paperwork on short notice. It usually goes back the same business day.
Common questions
Rental property questions we get asked
How much liability should I carry on a rental property?
More than the $300,000 most investors arrive with. A landlord policy typically caps at $500,000 per loss, so once your equity across the portfolio passes that, an umbrella is the cheapest protection available — excess liability starts at $1 million and often runs around $300 a year.
Do I need a separate policy for every property?
Not necessarily. Several properties can often be scheduled under one policy, which simplifies renewals and can earn better pricing than a stack of individual policies. It is worth re-reviewing each time the portfolio grows.
My tenant has renters insurance. Does that cover the building?
No. Renters insurance covers the tenant's belongings and the tenant's liability. The structure, your liability as the owner, and your lost rental income all sit on your policy.
Does a landlord policy cover short-term or Airbnb rentals?
Often not. Short-term rental is a different exposure and many Dwelling Fire policies exclude it outright. Tell your agent how the property is actually used — that one answer can change which carrier will write it.