What is landlord insurance?
Owning rental property represents a significant financial investment. Landlord insurance, also called Rental Dwelling insurance, is designed to help address the unique risks associated with rental properties.
If you own rental property, you're not responsible for insuring your tenants' personal belongings (they need their own renters insurance for that). However, you are responsible for the building structure and its permanent features, including walls, floors, roofing and built-in elements like cabinets and appliances. Rental Dwelling insurance is designed to help cover these aspects of your rental property.
Property types
Rental Dwelling insurance is available for single-family homes, duplexes and triplexes, subject to underwriting eligibility requirements. If your rental portfolio exceeds what Rental Dwelling insurance is designed to cover, a commercial insurance policy may be more appropriate.
This coverage works for both full-time rentals (long-term leases) and frequent short-term rentals (vacation-type properties).
What Rental Dwelling insurance is designed to cover:
Single-family homes, duplexes and triplexes you rent to tenants
Other structures on the property (garages, storage sheds, fences)
Landlord furnishings you own at the rental (up to $2,500 automatically; additional personal property coverage is available)
Lost rental income if the property becomes uninhabitable due to a covered loss
Liability if someone is injured at the rental
Medical payments for injuries occurring on the rental property
Coverage options
You can choose from two coverage levels for your rental properties.
Basic coverage
Coverage for specific risks listed in your policy.
What’s covered will be listed in your policy and includes things like:
- Fire or lightning
- Theft
- Vandalism
- Windstorm or hail
- Freezing of plumbing
Premier coverage
A broader coverage option that lists what's not covered rather than what is.
In addition to what the basic policy covers, you may be covered for accidents like the ones below (depending on the situation):
Countertop burns
Paint spillage
Power surge damage to appliances
Claim settlement options
You can choose from the following claim settlement options:
Actual cash value covers your rental home and belongings at the cost to repair or replace the damaged property, minus depreciation.
Replacement cost is designed to help cover the cost to repair or replace your property and belongings without subtracting for depreciation.
Liability and medical
Liability insurance
Landlord liability insurance is automatically included with your Rental Dwelling policy and is designed to help address costs if someone is injured at your rental property. This may include injuries to tenants, their guests or others (such as delivery personnel or maintenance workers). Coverage limits up to $1 million are available.
Liability coverage may help with:
Medical expenses for the injured party
Legal defense costs if you're sued
Property damage claims if you're held responsible
Settlement or judgment costs up to your policy limits
Medical Payments coverage
Medical payments coverage may help address medical costs for others injured on your rental property, regardless of fault. Coverage limits up to $25,000 are available.
This coverage can apply even in situations where you're not legally liable, helping to cover immediate medical expenses and potentially avoiding larger liability claims.
Additional coverage options
Your rental properties may have unique needs. Additional coverage options are available at an added cost, including:
Coverage for additional risks
The following risks aren't covered on the base Rental Dwelling insurance policy, but coverage may be available for:
Earthquake damage
Damage to unoccupied seasonal dwellings (like vacation homes and vacation rentals)
Sump pump failure and/or back-up of sewer or drain
Mine subsidence (for damage caused by underground mine collapse; available in IL and IN only)
Loss assessments from a homeowners association
Flood insurance
Landlord insurance doesn't cover flood damage. Flood insurance may be available through the National Flood Insurance Program (NFIP) or other participating carriers. We can help get you covered if your property qualifies.
Money-saving discounts
Several discounts may help reduce the cost of your Rental Dwelling policy.
Back-up System Discount
If you have added our Sump Pump Failure/Back-up of Sewer or Drain Coverage Endorsement on your Rental Dwelling insurance policy and have one or more back-up systems in place, including a water pressure or battery back-up on your sump pump or a permanently installed generator, you may qualify for our Back-up System Discount.
Preferred Payment Discount
If you pay your Rental Dwelling insurance premium bill on an annual basis, you'll qualify for the Preferred Payment Discount.
Age of Home Discount
Newer homes automatically qualify for the Age of Home Discount, but the discount is also available if you have an older home that has been fully renovated (including updating or replacing the wiring, plumbing, roof, etc.). Talk to your representative for details for your state.
NOTE: This discount is not available in Minnesota.
Age of Wiring Discount
If you are a resident of Minnesota and have new or upgraded electrical wiring, you could qualify for this discount on your Rental Dwelling insurance policy. Older homes with upgraded wiring require documentation from an electrical contractor or building inspector that shows all electrical components are updated.
Hail-Resistive Roof Discount
If your home's roof meets certain testing standards, you may qualify for a discount on your Rental Dwelling insurance policy. Documentation requirements may apply; your representative can provide details for your situation.
Safe Heat Discount
You may qualify for this discount on your Rental Dwelling insurance policy if your home doesn't have a solid fuel burning unit (like a wood burning stove).
Who needs landlord insurance?
Rental Dwelling insurance may be appropriate if you:
Own rental property - Single-family homes, duplexes or triplexes that you rent to tenants, subject to underwriting eligibility requirements
Own vacation rental properties - Properties you rent through short-term rental platforms on a frequent basis
Have a mortgage on rental property - Your lender will require property insurance as a condition of the loan
Are converting your former primary residence to a rental - When you move out and rent your former home to tenants
Inherit rental property - Property that comes with existing tenants or that you plan to rent out
When Rental Dwelling insurance may not be the right fit:
You live in the home full-time (homeowners insurance may be appropriate instead)
You rent out a room or portion of your primary residence while still living there (a homeowners policy with the appropriate endorsement may be more suitable; discuss with your representative)
Your rental portfolio exceeds what Rental Dwelling insurance is designed to cover (commercial property insurance may be needed)
Frequently asked questions
Landlord insurance is designed to help cover the rental property building structure, other structures on the property (detached garages, sheds), landlord furnishings you own at the rental (up to $2,500 automatically, with additional personal property coverage available), lost rental income if the property becomes uninhabitable due to a covered loss, liability if someone is injured at the rental and medical payments for injuries on the property. Landlord insurance does NOT cover your tenants' personal belongings, tenants need their own renters insurance for that.
While landlord insurance isn't legally required, mortgage lenders typically require you to carry property insurance if you have a loan on the rental property. Even if you own the property outright, Rental Dwelling insurance may be worth considering because you're exposed to significant financial risk if the building is damaged, someone is injured on the property or you lose rental income due to a covered loss. A standard homeowners policy is generally not designed to cover properties rented to others, so a landlord-specific policy is typically the appropriate choice.
Landlord insurance and homeowners insurance serve different purposes. Homeowners insurance is designed for a property you occupy as your primary residence and covers your personal belongings. Landlord insurance, also called Rental Dwelling insurance, is designed for properties you rent to others and focuses on the building structure, liability for tenant-related risks and lost rental income if the property becomes uninhabitable due to a covered loss. If you rent out a room or portion of your primary home while still living there, a homeowners policy with the appropriate endorsement may be more suitable. Discuss your specific situation with a COUNTRY Financial representative to determine which coverage is right for your property.
Yes, landlord insurance includes lost rental income coverage (also called fair rental value coverage). This coverage is designed to help replace rental income you lose if your rental property becomes uninhabitable due to a covered loss such as fire or severe storm damage. The coverage is designed to apply for the time it takes to make repairs and get the property habitable again, up to your policy limits.
It depends on your situation. If you are renting out your entire home to tenants while you live elsewhere, a standard homeowners policy is generally not designed to cover that type of use, and a Rental Dwelling policy is typically more appropriate. However, if you rent out a room or portion of your primary residence while you still live there, a homeowners policy with the Home Sharing Endorsement may be an option. Contact a COUNTRY Financial representative to review your specific situation and discuss the appropriate coverage.
Landlord insurance may help cover sudden and accidental damage caused by tenants (such as a tenant accidentally causing a fire). However, intentional damage, vandalism by tenants or gradual damage from tenant neglect or lack of maintenance may not be covered. Your policy terms and state laws affect what tenant-caused damage may be covered.
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Home and commercial policies issued by COUNTRY Preferred Insurance Company®, Bloomington, IL.
The descriptions provided are for general informational purposes only and are not intended to constitute an insurance policy or to modify, amend or extend the terms, conditions or coverages of any insurance policy. Coverage, terms, limitations and exclusions vary. For complete details, please refer to the applicable insurance policy or contact a COUNTRY Financial representative.
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