What is Landlord Insurance?
Landlord insurance, also known as rental property insurance, helps protect property owners financially from damages and liability claims related to a rental property. If you're responsible for an entire building - including the exterior and roof - a landlord policy is the appropriate coverage. The same applies if you own a condo unit that you rent out, though that coverage differs slightly from a full-building landlord policy since you don't own the entire structure.
Determining the right type of property coverage depends on your specific ownership situation. Speaking with an insurance specialist can help clarify whether a landlord policy, a condo-specific policy, or another form of coverage best fits your circumstances.
What Does Landlord Insurance Cover?
A landlord policy is designed to protect both your physical investment and your financial interests as a property owner. Most policies include several core categories of coverage.
Core Coverage Categories
- Structure damage to the building
- Liability protection for injuries or damage occurring on the property
- Additional out-of-pocket expenses related to a covered loss
- Landlord-furnished appliances and fixtures
Matching your coverage to your rental arrangement matters. Consider which of these situations best describes your rental: a long-term lease (more than six months), an occasional short-term rental, or a frequent short-term rental model similar to popular vacation rental platforms. If you operate frequent short-term rentals, a commercial insurance policy tailored to that business model may be more appropriate than a standard landlord policy.
Property Investment
Whether you rent out a single-family home, condo, or townhouse, this coverage addresses damage to the residence itself and any permanent structures on the property.
- Damage to the residence
- Damage to permanent structures on the property
Personal Protection
Beyond physical structure coverage, landlord insurance can help protect your finances and your liability exposure as a property owner.
- Lost rent payments if repairs cause a temporary vacancy
- Liability coverage if someone is injured on the property
Extra Coverage Options
Depending on your property and risk tolerance, additional coverage options can address gaps a standard policy might leave open.
- Vandalism damage or theft of property you own
- Additional construction costs to bring the building up to current code after damage
What Landlord Insurance Doesn't Cover
While landlord insurance provides broad protection for most unplanned rental property expenses, certain scenarios fall outside the scope of a standard policy. Normal maintenance, wear and tear on landlord-furnished appliances, and earthquake damage are generally excluded across the board. A few other notable exclusions deserve specific attention.
Water and Sewage Backup
Damage resulting from water or sewage backing up into the property is typically not covered under a basic landlord policy. Additional coverage for this specific risk can often be purchased separately.
Short-Term and Vacation Rentals
Landlord policies are built for non-owner-occupied properties. If you rent out a room or floor of the home you live in, or rent your entire home for occasional short-term stays, you may need additional coverage on your homeowners policy rather than a landlord policy.
Flood Damage
Flood damage is excluded from landlord insurance policies entirely. A separate flood insurance policy can be purchased for properties that carry meaningful flood risk.
How Much Does Landlord Insurance Cost?
Landlord insurance premiums vary based on a range of property-specific and policy-specific factors. Understanding these variables can help you anticipate your costs and identify opportunities to manage them.
Factors That Affect Your Premium
- Location of the rental property and regional risk factors
- Size and age of the building
- Local weather conditions and climate risk
- Type and scope of coverage selected
- Construction materials used in the property
- Security features installed on the property
- Landlord's claims history
To manage your premium, ask your provider about available discounts and consider whether adjusting your coverage limits could bring costs more in line with your budget without leaving meaningful gaps in protection.
How to Compare Landlord Insurance Quotes
When evaluating quotes from different providers, it's important to look beyond the bottom-line premium and assess the actual scope of protection each policy offers.
- Compare the extent of property damage coverage included in each policy
- Review liability protection limits and what scenarios they apply to
- Check whether loss of rental income coverage is included or optional
- Look for optional add-ons such as legal expense coverage or emergency repair services
- Pay close attention to policy limits, deductibles, and stated exclusions that could affect a future claim
How to Save Money on Landlord Insurance
The Fortis Insurance offers several ways to help make landlord coverage more affordable without sacrificing the protection your rental property needs.
Pay-in-Full Discount
Paying your full premium upfront rather than in monthly installments can help you avoid transaction or installment fees, lowering your overall cost.
Bundling Opportunities
If you carry other insurance policies, bundling your landlord coverage alongside them may qualify you for additional multi-policy savings.
Coverage Limit Review
Periodically reviewing your coverage limits ensures you're not over-insured or under-insured relative to your property's actual value and risk profile.
Whether you own a single rental property or manage a portfolio of multiple units, The Fortis Insurance can help you find coverage that balances meaningful protection with an affordable premium.
Frequently Asked Questions
Protect your investment
PROTECT YOUR RENTAL INVESTMENT WITH CONFIDENCE.
Whether you own a single rental home or manage multiple properties, The Fortis Insurance helps you find landlord coverage built around your specific situation - and the peace of mind that comes with it.
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