Landlord Insurance: Coverage Basics

Renting out a property you once lived in is a common mistake precisely because the wrong policy is so easy to keep. A standard homeowners policy assumes you occupy the home, and using it for a rental can void a claim. Landlord insurance - usually a DP-1 or DP-3 policy - is built for the different risks of someone else living in your property.

What landlord insurance covers

• The dwelling. The structure itself against fire, storms, vandalism and other covered perils.
• Other structures. A detached garage, fence or shed on the property.
• Lost rental income. If the unit becomes uninhabitable after a covered loss, this replaces the rent you would have collected.
• Liability. If a tenant or visitor is injured on the property or you are sued as the owner.
• Landlord's contents. Appliances you provide, furniture in a furnished unit, and your own maintenance equipment.

Premium ≈ dwelling rebuild cost × rate + liability + lost-rent + peril surcharges

How it differs from homeowners

Landlord policies exclude the tenant's personal belongings - the tenant insures those with renters insurance. They include lost-rent coverage and higher liability, and they are priced higher than an owner-occupied policy of the same value because renters, on average, generate more claims.

Vacancy is the big trap

Most landlord policies stop covering a property after 30 to 60 days of vacancy. A vacant or flip property needs a specialised vacant-property policy, which is more expensive but keeps coverage in force during renovation or between tenants.

Ask tenants for proof of renters insurance

Requiring tenants to carry renters insurance protects them and reduces your liability exposure. It is standard practice and worth enforcing in the lease.

Frequently asked questions

Does landlord insurance cover tenant damage? Vandalism and malicious damage are often covered; ordinary wear and tear is not.

Can I cover a short-term rental? Not on a standard policy. Short-term and vacation rentals usually need a commercial or specialised endorsement.

Estimate your own premium with the calculator below.