Landlord insurance or dwelling fire insurance is a type of insurance that is required for people who rent out their homes. Owner-occupied properties are the only ones covered by traditional homeowner’s insurance. However, if the property is rented to tenants, homeowners’ insurance policies do not cover it. If you own a rental property, it’s important to know why you need landlord insurance and what it covers. And we make it easier to find the best landlord insurance policy by categorizing the top landlord insurance companies in the USA based on our evaluation.
What is Landlord Insurance?
Landlord insurance is a type of insurance that protects landlords against property damage and liability claims related to the properties they rent. Landlord insurance is an essential form of insurance coverage for any landlord who wants to protect their properties and the people who spend time in or near those properties from harm. Common rental properties include apartments, condos, townhomes, commercial buildings, and single-family homes.
Other types of insurance that protect real estate, such as commercial property insurance or that provide coverage for business risks, such as general liability insurance, may be familiar to landlords. Landlord insurance is a one-of-a-kind product that combines parts of other types of coverage and addresses the risks that landlords face when they rent out their property.
How Does Landlord Insurance Work?
By buying a landlord insurance policy, a landlord can give the financial risk of property damage or a liability claim to an insurance company. For example, if you don’t have landlord insurance and a fire does $50,000 worth of damage to your rental property, you will have to pay for all of the repairs and any money you lose because you can’t rent it out. Instead, the insurer would pay the $50,000 in repairs and potentially compensate you for lost rental income under a landlord insurance policy, as long as the event qualified for coverage under the terms of your policy and the costs were within the policy’s coverage limits.
Like with other types of insurance, landlords should work with their insurers to define the following coverage elements based on their needs.
- Coverage: The types of damage, incidents, and expenses that the policy will cover. Landlord policies typically include coverage for property damage as well as liability claims.
- Monthly premium: The amount of money that the policyholder must pay every month to keep the policy.
- Deductible: The amount of money that a covered company must pay toward a claim before it is covered.
- Policy limit: The maximum amount that the insurer is required to pay for claims made under the policy.
Best Landlord Insurance Companies in the USA
Our research team looked at several factors, such as financial strength, customer service, cost, and discounts, to find the best landlord insurance companies in the USA. We also looked at each company’s website to see which one made it easy to do business online and offered extra coverage options that let you make your policy fit your needs.
Based on our research, the following are some of the best landlord insurance companies in the USA to consider:
#1. State Farm
We chose State Farm because their landlord insurance policies have a lot of great features, like identity restoration, business property, and ordinance of law. They also have high financial strength ratings, which are important things to look at.
State Farm has a strong reputation for financial strength, with an AM Best A++ rating and an S&P Global Rating of AA as the best top landlord insurance companies in the USA. State Farm, which was founded in 1922, now insures more cars and homes than any other insurance company in the United States.
Furthermore, in J.D. Power’s 2021 USA Leasing Insurance Study, which compared companies based on customer satisfaction, the claims process, billing, and several other factors, State Farm ranked among the top 5 peer companies for customer satisfaction.
#2. Liberty Mutual
We chose Liberty Mutual as the runner-up because, unlike with State Farm, landlords can change the policy to fit their needs.
Liberty Mutual is a household name in home and auto insurance, with an A rating from both AM Best and Standard & Poor’s. With over 45,000 employees worldwide, the company has been around for more than 100 years and is the sixth-largest property and casualty insurer in the world.
Liberty Mutual landlord insurance includes standard coverage for physical structures and liability. Coverage also includes wind and hail damage, as well as a reasonable rental value. You can tailor your coverage by purchasing an inflation protection add-on. When you speak with an agent, additional add-ons may be available.
Like the best landlord insurance companies in the USA, Liberty Mutual makes its policies fit each person and each property. So, to get a quote, you’ll have to talk to an agent and give them information about yourself and your property.
Allstate has a solid reputation for quality, and they provide multi-policy discounts to customers who have multiple rental properties or other types of insurance policies with them.
Also, Allstate Insurance has been around since 1931, and it now backs more than 113 million policies around the world. Allstate is different from other insurance companies because it uses local agents who work directly with customers to make insurance more personalized than what some other companies offer. In terms of financial strength, Allstate has an AM Best A+ rating and an S&P Global Rating of AA-.
Farmers were chosen because of their willingness to insure multi-unit rental properties, whereas many other providers only insure single-family homes.
Furthermore, Farmers Insurance was started in 1928 in a tiny one-room office in Los Angeles, California. Now, their landlord policies and other types of insurance offer personalized coverage and service. AM Best has assigned this company an A rating for financial strength.
Farmers’ landlord policies cover normal property damage, like if the wind damages your rental property or pipe bursts and causes a lot of water damage. You’ll also get standard liability insurance that will cover medical costs if someone gets hurt on your property and needs help. Policies can cover buildings with more than one unit, like triplexes and quadplexes, so landlords can get full coverage in one place.
#5. American Family Insurance
We chose American Family Insurance as the best commercial insurance company because they offer coverage just for commercial landlords and make it easy to change their policies to fit the needs of your business. Also, the American Family website has several tools and resources that landlords will find especially useful.
Both AM Best and Standard & Poor’s have given American Family Insurance an A rating for financial strength. The Madison, Wisconsin-based provider has been in business since the 1920s, though its name and the type of insurance it offers have changed over time. Today, American Family Insurance is well known for its homeowner’s insurance, auto insurance, and commercial landlord insurance policies.
Foremost makes you a single policy that fits your needs, whether you have one rental property or ten. This makes it simple for landlords who buy, sell, and manage properties to have the appropriate protection at all times.
Even though Foremost Insurance Group is not a well-known company, it has great ratings for its financial strength, such as an A from AM Best. Farmers Insurance Group of Companies, which owns Foremost, is the ninth-largest personal property and casualty insurance company in the United States and the fifth-largest landlord insurance company.
Travelers Insurance offers traditional landlord insurance policies that are good for single-family homes and can be changed to fit your needs instead of those of other people.
AM Best gives travelers an A++ rating for financial strength, and the company has been in business for over 165 years. Travelers started as an accident insurance company in 1864. Today, they offer coverage for cars, owner-occupied homes, and other assets, as well as specialty coverage like landlord’s insurance, renter’s insurance, and boat and yacht insurance.
Travelers offer landlord insurance for single-family homes and multi-family units, allowing you to protect the structure you own as well as any additional outbuildings. You can get coverage for damage and theft, as well as premises liability and medical payments, as well as special insurance for loss of use.
Geico offers coverage for landlords who want standard coverage, such as coverage for their property, lost rent, liability, and vandalism. Unlike many of the companies on our list, the carrier even provides online quoting services. However, because there isn’t much coverage information available online, landlords should speak with a Geico agent before finalizing coverage to ensure they are properly insured and have the coverage they require.
USAA gives active and former military members and their eligible family members a lot of options that are made just for them, like coverage for renting out a room in their primary home instead of a whole rental home. This is a one-of-a-kind offering in the landlord insurance market.
USAA is well-known for providing insurance tailored to military families needs. A military member who moves to a new military base and decides to rent out their old home instead of selling it can get a policy that covers up to ten tenant-occupied homes. Because military members may be transferred every few years, this can be a good way to diversify their investments through multiple rental properties while still having the option of relocating to one of those properties once they have retired from the service.
Also, many of the best insurance companies will only cover a landlord’s property if it is empty, but USAA will cover a landlord who rents a room to a tenant for any reason.
Hippo has become a strong competitor in the online insurance market and is one of the Insurtech companies with the fastest growth. Because it uses algorithms to process and pay claims, it can offer much lower premium rates for landlord insurance than most other companies.
Our favorite thing about Hippo is that, unlike many other insurers, it offers “enhanced coverage” add-ons for a wide range of situations, from modern necessities like electronics and home office coverage to natural disasters.
By default, Hippo covers damage to the building and its contents, liability, and loss of rental income. provide three preliminary levels of protection: “the essentials,” “our best value,” and “expanded protection.” Consumers can edit and change the coverage amounts as needed, but they should be aware that this will affect their premiums as well.
How We Selected the Best Landlord Insurance companies
We compared several key factors for each company to determine our top picks for the best top landlord insurance companies in the USA. These include the standard and add-on coverage offered by each insurance company, the quote and claim process for each company, and the AM Best rating of each company. We also looked at each company’s coverage area and looked for extras like apps or educational content on their websites. We chose the ones that stood out the most among their competitors in specific categories, such as Best Overall, Best for Discounts, Best for Commercial Spaces, and Best for Military Members, after a thorough evaluation.
How to Find the Best Landlord Insurance Companies
It is important to have enough insurance for your rental property, including liability insurance in case a tenant or a guest gets hurt on the property. Here are some things to think about when looking for the best landlord insurance for you:
Do you have any other landlords? Discuss their insurance and what they consider to be essential coverage. Their basic coverage may be different than yours, but talking to other people can help you figure out what’s out there.
Request quotes from as many carriers as possible with coverage that is as similar as possible so that you can compare costs and determine which company will offer you the best rates for the coverage you require.
While some companies provide online quotes, calling and speaking with an agent about your needs can be beneficial. There could be discounts available, or you could buy endorsements that tailor the coverage to your property.
Cost of Purchasing a Policy from One of the Best Landlord Insurance Companies
The cost of landlord insurance will vary depending on the landlord and the policy. Rates depend on many things, such as the age, location, and size of the property, as well as how much and what kind of coverage is needed. The more landlord coverage is purchased, the higher the premiums.
In addition to maximizing discounts, it is critical to compare insurance quotes. For a fair comparison, landlords should obtain at least three quotes on policies that provide the same or very similar coverage. This will provide an accurate picture of which insurance company offers the best landlord insurance rates.
All of the best landlord insurance companies in the United States offer a wide range of policies, have a lot of experience in the field, and have high overall ratings for their financial strength. Some have higher limits of coverage than others, while others offer competitive prices and specific coverage for other buildings on your property. Overall, we recommend that you look into State Farm. The company is a leader in its field and lets landlords customize their insurance policies and add extra coverage.
Frequently Asked Questions
Is landlord insurance a legal requirement?
While landlord insurance is not required by law, if the property is mortgaged, the lender may require landlord insurance. Landlords should have coverage even if they don’t have a mortgage, because they could lose their investment if the property suffers severe damage from a covered event, such as a fire or windstorm.
Can I be covered by my standard home insurance?
Only owner-occupied homes are covered by the best homeowners insurance companies, not rental properties. Because landlords’ insurance needs differ from those of homeowners, insurance companies offer policies tailored specifically to them.
How do I make a claim on my landlord insurance policy?
While it depends on your landlord’s insurance company, claims are frequently filed online, via an app, by phone, or by speaking with an agent. This is a good question to ask when evaluating the best landlord insurance companies to ensure that the claims process is simple for you.
Can I get landlord insurance for multiple properties?
Many landlord insurance companies offer landlord insurance policies for multiple properties. If this applies to you, it’s critical to consult with an insurance agent during the quote process to ensure that the company offers policies that cover multiple properties.
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