The Best Landlord Insurance Companies

Contributor, Benzinga

Want to jump straight to the best? Get a quote from Lemonade for Renters Insurance.

Rental properties fall in an unusual nexus between the worlds of business and real estate. While you may own the rental property and retain the deed to the space, you also exchange a certain amount of rights and freedoms when you decide to rent out your home. As a result, landlords have a number of liabilities and hazards that might not be covered by even the best homeowners insurance policies.

If you’re planning on renting out a home, do your due diligence to save yourself time, stress and money later down the line. We’ve created a crash-course on everything you need to know about landlord insurance as well as a guide to some of our favorite landlord insurance providers.

Quick Look: The Best Landlord Insurance

The Best Landlord Insurance Companies

Take a look at the companies who make the best landlord insurance.

1. Allstate

You might already have homeowners insurance for your personal dwelling from Allstate, but did you know that the insurance provider also offers landlord insurance policies as well?

Landlord policies from Allstate are comprehensive and can include dwelling protection, coverage for non-home buildings on your rental property, liability coverage, fair rental income insurance and burglary coverage.

Their rental property insurance even offers optional rental property under construction insurance (which can cover the costs of relocating tenants while you make upgrades or urgent repairs to the space) and building code insurance (which helps cover the costs of ordinances and city code inspections in the event that you decide to upgrade the building).

Allstate’s policies also include flood protection as an optional add-on and umbrella policies for landlords that are particularly concerned about the costs of being involved in a lawsuit.

With over 80 years of experience and a wide breadth of insurance options, Allstate is a quick and reliable choice for any landlord — and you might even be able to save on your personal insurance if you already have an Allstate policy by bundling your home and landlord insurances together.

Read Benzinga’s full Allstate Home Insurance Review

Compare Quotes securely through Allstate’s website
Best For
No Recent Claims
N/A
1 Minute Review

Allstate is one of the best-known insurance companies in the business and for good reason. It offers a range of coverage options so you can tailor your coverage to your needs. You can apply for a policy through a local agent or online. Even if you buy a policy online, you can still get assistance from a local agent, which can be helpful when it’s time to file a claim. 

Allstate’s claims process is clear and you can track it online so you know exactly what’s going on. It also has a mobile app that you can use to pull up ID cards, take photos for a claim and pay your bills. Allstate is a good choice for those with multiple policies and who like personal service.

Best For
  • Home owners with multiple policies
  • Home owners without a recent claim
Pros
  • Ease of online service or through an agent
  • Clear claims process
  • Useful mobile app
Cons
  • Average customer satisfaction for claims
  • Optional coverage like yard and garden not available in every state

2. Steadily Landlord Insurance

Steadily is the top-rated provider of landlord insurance, offering a wide variety of coverage. Rental property owners, whether they own 1 single family rental, a portfolio of quadplexes, or a vacation rental will find competitive rates and great service.

Getting coverage from Steadily is fast, efficient and transparent process. Get a bindable quote online or even via text within 10 minutes — some users will also start receiving instantaneous quotes soon. There’s zero hidden fees, even for cancellations, and you can see your coverage start as early as the next business day.

Every Steadily agent is a landlord insurance expert. They use their deep knowledge of the landlord insurance sphere to provide customers with the best, most affordable coverage, offering the best quote from more than 10+ carriers. And, they’ll be there if you need help navigating any complicated situations.

The Steadily team is there for you around the clock. Get in touch for your free, personalized quote today.

Get Started securely through Steadily Landlord Insurance’s website
Best For
Insuring multiple properties
N/A
1 Minute Review

Steadily Landlord Insurance has fast, affordable coverage options for all kinds of rental properties, including Airbnb and vacant units. Steadily is available in every state. Its easy quote process asks you to describe your rental property with a few short questions, then guides you to a final coverage review. This quick process is done through a phone call or SMS chat, and all policies are e-signed, allowing for immediate coverage.

Launched in 2020 with an initial investment of $3.8 million in venture capital, Steadily is based in Texas and Kansas. It’s aiming to provide a new, digital experience for landlords looking for insurance products. Steadily is promoting a culture of excellence and its early customer reviews evidently support this model

Best For
  • Landlords who want the flexibility to cover multiple kinds of rental properties
Pros
  • Convenient and fast e-signatures for policy forms and application
  • Available in all 50 states
  • Policies available for vacant properties, property under renovation and short-term vacation rentals as well as long-term rentals and multiunit buildings
  • 4.7 stars out of 5 on Trustpilot with positive early reviews
Cons
  • Short history of financial security or claims satisfaction for review
  • Fewer endorsements or additional coverage options as some of its competitors

3. American Family Insurance

American Family Insurance is a household name for its homeowners insurance, but it also offer comprehensive commercial landlord insurance policies.

You can customize coverage for the rental structures you own and for general liability. There is also additional coverage available like flood insurance and coverage for outbuildings like sheds, fences and garages. You can also bundle your landlord insurance from American Family Insurance with a commercial umbrella policy that covers you for limits beyond what your landlord insurance policy offers.

To get a quote, you’ll have to speak with an American Family agent. The extra communication could pay off though, if you bundle your landlord policy with your personal residential coverage, auto insurance or other policies.

get started securely through American Family’s website

4. State Farm

State Farm is another wide-range insurance provider that offers bundling policies for landlords who already have their homeowners insurance through State Farm.

For everyone else, State Farm’s policies are competitive and include a package of policy types. In addition to comprehensive dwelling and general liability insurance, State Farm’s rental property insurance policies also include coverage for other structures on the property with no additional charges or fees.

If your rental space has a pool, fence, detached garage or shed, you should make State Farm one of your top choices for landlord insurance, as typical policies require landlords to pay an additional premium to insure these structures along with the home itself.

One other unique form of coverage offered by State Farm is its optional data restoration and identity protection add-on. Data restoration insurance provides coverage in the event that your electronic system is hacked or compromised, and identity protection helps landlords recover if your identity is stolen and used without consent as a result of the breach.

In a world that’s progressively moving more and more towards online rental payments and maintenance requests, data protection coverage is an innovative idea that can save landlords time and money if you use an electronic payment processing system.

Best For
Highly customizable business insurance
N/A
1 Minute Review

State Farm is among the largest business insurance providers in the United States, maintaining high financial stability and offering a massive number of policies. State Farm’s biggest strength is its network of more than 19,000 agents throughout the country who can assist with in-person insurance questions and applications.

Though more tech-savvy business owners may prefer an online-oriented application process, those who prefer a more personal touch may like State Farm’s in-person approach. However, business owners also cannot file a claim online, and they must contact a local agent to get a quote. While this can be frustrating for those short on time, State Farm’s 100 insurance products can be difficult for business owners to navigate on their own. 

No. 1 Highlight: Agent network includes more than 19,000 insurance professionals

A.M. Best rating: A++

Moody’s rating: Aa1

 

Best For
  • Small-business owners
  • Customers who already have a State Farm policy
  • Business owners in need of highly customized insurance
Pros
  • Excellent financial ratings show stability
  • Offers a wide range of customizable business insurance policies
  • Specialty policies available to small-business owners
Cons
  • Cannot get a quote online directly from provider; must contact an agent or use a broker
  • Cannot file a claim online or via the app

5. Safeco

Another policy provider offing bundle discounts, Safeco’s insurance policies are on par with its competitors. The company allows you to adjust your deductible, which can be a powerful tool if you want to maintain insurance but want to lower your monthly premium; simply choose a higher deductible and pay less each month.

Safeco provides actual cash value for replacement and repair costs, and its liability coverage includes legal expenses as well as ordered fees. Safeco also offers multiple tiers of insurance pricing to suit your needs as a landlord.

You know you’ll be covered in the event of a disaster or sudden emergency with 24/7 claims assistance and reporting.

Get started securely through Safeco’s website

6. Liberty Mutual

Liberty Mutual is a top-rated insurance provider whose coverage options include standard damage and liability protections along with other options like guaranteed rental income and lock replacement costs.

Policies from Liberty Mutual also include fair rental value coverage, which provides housing for tenants at a price equivalent to the amount that tenants pay each month in rent in the event that your space becomes unlivable.

Liberty Mutual also offers a unique form of inflation protection coverage. When you sign onto a policy, Liberty Mutual automatically adjusts your rates and your plans to keep up with inflation rates and the rising cost of home repairs, which adds peace of mind for landlords worried about coverage for an emergency.

Liberty Mutual is a responsive and customer-focused insurance company that’s equally as viable for the landlord with a single property to as it is to the real estate investor with ten homes to manage.  

Best For
Tailored coverage
N/A
1 Minute Review

Liberty Mutual protects your home against a variety of common dangers and losses. An optional provision, known as loss forgiveness, helps prevent rates from going up after you file your first claim, while inflation protection helps protect your belongings each time your policy renews to help balance it with the cost of living. Damaged items are replaced at full cost, so you don’t have to worry about those items being depreciated and having to pay the difference out of pocket.

Get home insurance, renters and landlord policies from Liberty Mutual.

Best For
  • Homeowners who want the freedom to customize some aspects of their coverage
  • Homeowners looking for insurance that covers the full replacement cost of their personal property
  • Those who are looking to save money with a solid selection of discounts
  • People who want to be able to view and manage their policy online
Pros
  • A long and considerable list of discounts that can save you hundreds of dollars
  • Ability to manage and track claims directly from computers or mobile devices
  • Excellent claims rating
  • Established company
Cons
  • Decent financial stability, but could be improved
  • Customer service and claims handling not always consistent or satisfactory

7. American Modern

American Modern offers 2 types of coverage policies: comprehensive coverage and flexible coverage.

Comprehensive coverage is offered for homes up to 80 years old (60 in some states, make sure to check with a representative before you buy) and provides replacement costs for most usual damages seen by rental properties.

Flexible coverage is available for homes of any age and provides coverage for a list of named perils, including fire, lightning, hail and other natural hazards. Both policies cover the dwelling itself, other structures on the property, debris removal and even service charges from the fire department if they need to get involved.

Larger real estate investors may be interested in American Modern’s multi-property coverage option, which is available to real estate investors who own ten or more rental properties.

American Modern’s multi-property protection package allows property owners to quickly insure all of their homes with standard coverage options (including dwelling protection, other structure protection, personal property insurance and basic protections against burglary and vandalism).

You can quickly pay for all of your premiums once a month using direct debit, a check or a credit card payment, and you won’t need to write an individual check or schedule a payment for each of your properties. This can be an additional benefit for busy real estate investors, especially because you can also pay up to a year’s premium in advance at the time of sale.  

compare quotes securely through American Modern’s website

What’s Landlord Insurance?

Like homeowners insurance, landlord insurance protects you against loss resulting from damage to your property while it’s being rented by tenants.

Landlord insurance policies often differ from homeowners insurance policies because they usually cover damage done intentionally to your property by irresponsible tenants, whereas most homeowners insurance policies explicitly deny coverage for any intentional acts done to the property.

Also like homeowners insurance, you’ll usually pay two costs when you maintain coverage: a monthly premium as well as a deductible when you file a claim.

The specifics of what’s covered in your landlord insurance will depend on the insurance provider that you choose and your individual policy. However, most plans include the following three levels of coverage as a baseline:

Dwelling Coverage

Dwelling coverage is the most basic form of insurance and should be included in every landlord insurance policy. Dwelling coverage protects you from damage incurred to the exterior and interior of your property.

It may cover furniture and possessions that you provide if you are advertising a pre-furnished space but most policies limit coverage to the exterior of the building and the functions of the home, including plumbing, electrical systems and fixed appliances.

Most landlords advise tenants to purchase their own renters insurance policy if they’d like to have coverage for their personal property contained within the unit.

If a tenant or a contractor hired to do work on your property is injured, he or she may be able to sue even if the cause of the injury was largely out of your control. Like homeowners liability insurance, medical and legal liability protection can help you avoid paying for fees and representation out-of-pocket medical expenses.

Liability insurance is especially important for landlords because as a property owner, you are probably on site every day to make sure that all of your liabilities are covered.

Who Needs Landlord Insurance?

Lost rental income protection gives you the value of the rent you’d normally receive from tenants in the event that your rental property becomes totally unlivable.

For example, a property you own might be rented out for $1,000 and is suddenly stricken by a termite infestation. Insurance policies with lost rental income protection will offer you a payout of $1,000 that you’d normally receive in rent until the problem is fixed and you’re able to move your tenants back in.

Additional protections that your policy may offer as add-ons include:

Guaranteed Income Insurance

Did your tenant skip out on rent this month? Guaranteed income insurance can help you recoup the remainder of the rent that they failed to pay.

Flood Insurance 

In the same way that many homeowners insurance policies don’t cover flood damage, landlord policies severely limit the amount of money that you can recover in the event that your rental unit is flooded.

If your rental property is situated near a lake or creek or is located in another area that’s prone to flooding, make sure your policy includes flood protection.

Emergency Repair Coverage

Emergency repair coverage helps pay contractor bills in the event that a tenant needs a sudden repair, like when a pipe bursts or a hot water heater goes out.

If you handle your repairs yourself, emergency repair coverage will help you recoup the costs of materials you used to correct the problem as well as gas and other costs you incurred while traveling to the property. 

How Much Does Landlord Insurance Cost?

Estimates have found that the average American pays about $1,100 per year in home insurance but landlords can usually expect to pay between 20 and 30 percent more for their landlord insurance.

This is because rental properties are damaged more often than homes occupied by their owners. This increases the liability on the insurance company and results in a higher premium for you.

The cost of landlord insurance is also dictated by a number of other factors, including:

  • The value of your rental property and the cost of replacements
  • Whether or not you allow short term or student rentals (short term rentals increase the possibility of encountering a bad tenant and results in a higher premium)
  • Your rental property’s proximity to fire departments and police stations
  • Crime statistics for the area
  • The current condition of your rental property
  • The geographic location of your rental property

What to Look for in a Landlord Insurance Company

Replacement Cost Value

Some landlord insurance policies offer property owners a standard lump-sum payment or “actual cash value” (the estimated price that your home is worth after depreciation) to repair damage that they’ve incurred.

Instead, look for a policy that includes replacement cost, which will offer you a payment equal to what you’ve actually spent rebuilding or repairing your property.

Some Level of Personal Property insurance

While personal property insurance is an absolute must for landlords who rent out pre-furnished units, you’ll want to maintain at least some level of personal property insurance if you’ve included any form of furnishing in the home.

Commonly-forgotten items like rugs, curtains or counter appliances are usually not recoverable if you don’t have personal property insurance.

Acts of God Coverage

Some insurance policies exclude coverage for “acts of God,” which may include flooding, sinkholes, tornados, tsunamis and hurricanes, depending on the policy.

If you live in an area that’s prone to any one of these concerns, be sure to carefully read your policy and understand what’s covered and what isn’t.

Find Landlord Insurance Today

Going without protection can put your investment and your livelihood in jeopardy. Some policies will offer you an extra incentive to sign on by bundling your home or auto insurance together with your landlord insurance, making regular updates and repairs to your property or purchasing insurance before you’ve placed tenants in the unit.

No matter which type of insurance policy you choose, the best way to protect your rental property is to choose tenants who respect your space. If you’re a responsive and proactive landlord, you’ll be able to make the most out of your insurance policy and secure a lower premium.

Frequently Asked Questions

Q

1
asked
A
1
answered
Q

1
asked
A
1
answered