Renting out property to someone else means you’ll need more than a standard home insurance policy — you’ll need landlord insurance. This is true for all landlords, from people renting out part of their home to short-term guests to people who own an apartment building with multiple units.
Also known as rental property insurance, landlord insurance offers coverage to meet your needs if you are renting out property to someone else, including coverage for damage caused by tenants or loss of rental income due to a covered peril.
Our top picks for the best landlord insurance companies of 2024
According to our analysis of landlord insurance companies across the country, we found American Family offers the best landlord insurance coverage. USAA and American Modern also had high ratings in our analysis thanks to a combination of low rates, excellent customer service and financial strength ratings, and comprehensive policy options.
However, keep in mind that American Family is only available in 17 states and USAA is only available to currently enlisted members of the military, veterans, and their families. Each company is unique, so what works best for one person may not be the best option for someone else. This is why it is so important to compare quotes from multiple companies through an insurance marketplace like Policygenius to make sure you are getting an insurance policy that meets your needs at the lowest possible rate.
Methodology
How we chose the best landlord insurers of 2024
To find the best landlord insurance companies, our team of licensed insurance experts and operations specialists reviewed over 60 companies using an extensive rubric of criteria including AM Best ratings, customer complaint data, coverage options, and more to find companies that offered the following:
Robust policy add-ons and high coverage limits that cater specifically to landlords
Strong customer satisfaction ratings and reviews
Excellent discounts to lower the cost of coverage
Company | Best for … | Policygenius rating | |
|---|---|---|---|
Overall | 4.5 | ||
Apartment & condo owners | 4.5 | ||
Military members | 4.9 | ||
First-time landlords | 4.4 | ||
Renting your house on Airbnb | 4.4 | ||
Vacant rental properties | 4.9 |
Best overall for landlord insurance
2024 Policygenius award winner
American Family
4.5
Why we chose it
American Family offers a variety of coverages that are good for landlords, including temporary rental coverage, vacant home insurance, water backup insurance, and flood insurance. This puts American Family at the top of our list for landlord insurance.
Pros and cons
Pros
Affordable rates and 11 available discounts
Ranked #2 in J.D. Power’s 2022 U.S. Home Insurance Study
Diminishing deductible feature to lower out-of-pocket claim costs
Cons
Only available in 19 states
Offers online quotes, but requires talking to an agent to complete the process
Best for apartment and condo owners
2024 Policygenius award winner
Farmers
4.5
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
Along with saving around 20% when you bundle your home and car insurance, Farmers also gives you access to its extensive suite of discounts, unique policy credits, and claim-free incentives that help put money back in your pocket.
Pros and cons
Pros
Above-average property claims satisfaction rating with J.D. Power
Extended and guaranteed replacement cost for your home
Shave $50 off your deductible each year you’re with Farmers
Cons
Below-average scores on J.D. Power’s digital experience survey
More details
Landlords with multiple rental units may benefit from SmartMove, a service Farmers offers that allows them to screen potential tenants with just an email address.
Best for military members
2024 Policygenius award winner
USAA
4.9
Why we chose it
USAA offers robust coverage and low rates, making it a good choice for military members and their families. And because USAA offers a variety of coverages, members can bundle their landlord coverage with their home and auto coverage for an extra discount.
Pros and cons
Pros
Affordable rates
Over a dozen additional coverage options
Industry-best customer service and claims satisfaction ratings
Cons
Limited to people affiliated with the U.S. military
More details
USAA offers high-quality coverage, like extended dwelling coverage, and excellent rates to both active and retired members of the military, which makes them an excellent coverage option for landlords who qualify.
Best for first-time landlords
2024 Policygenius award winner
Travelers
4.4
Bundle home & auto
New homebuyer discount
Mobile app
Offers extended replacement cost
Offers flood insurance
Why we chose it
Travelers covers rental properties with up to four units. This means every landlord, from someone just getting started with their first rental to seasoned landlords who own multiple properties, can find the coverage they need with Travelers.
Pros and cons
Pros
Offers short-term rental coverage for Airbnb hosts
Offers extended landlord liability coverage with limits above $100,000
Doesn’t require prior insurance on the home
Cons
Must get a quote from a local independent agent
More details
Travelers doesn’t require prior insurance coverage on a home and offers extended limits of liability coverage, making it an excellent choice for new landlords who are insuring their first rental property.
Best for renting your house on Airbnb
2024 Policygenius award winner
Allstate
4.4
Bundle home & auto
Smart home discounts
All 50 states
Why we chose it
Short-term rental owners may like Allstate thanks to HostAdvantage, an affordable short-term rental coverage that can be added to any homeowners policy. This makes Allstate a good choice whether you are renting out a single room or your entire house.
Pros and cons
Pros
Offers HostAdvantage for short-term rental coverage added to your own home insurance policy
Offers water backup protection and other coverage add-ons
Cons
Beginning to pull back coverage in high-risk areas
Customer experience scores with J.D. Power are below the segment average
More details
With a product like HostAdvantage, Allstate stands out as one of the best options for landlords who rent out their personal houses or own short-term rentals.
Best for vacant rental properties
American Modern
4.9
Why we chose it
American Modern specializes in insurance for high-risk homes, including mobile homes, vacant homes, and rental houses. It even offers coverage if the property is damaged or lacks modern amenities, making it a good choice when repairing rental properties.
Pros and cons
Pros
Covers high-risk homes that have been rejected by other standard insurers due to age, location, or claims history
Offers a slew of policy add-ons and coverages for different types of homes, including mobile, vacation, and vacant homes
Received 20% fewer customer complaints than other companies of its size
Cons
No online quote tool
Can be more expensive than traditional insurers
More details
How to find the best landlord insurance
There are several insurance companies offering landlord insurance in almost every part of the country. To find the landlord insurance policy that is best for your needs, you’ll need to consider a few different factors.
Assess your needs. Landlord insurance covers a wide variety of situations, from people renting out a room on AirBnB to people owning apartment buildings with multiple units. Each landlord has their own unique needs, so consider everything about your rental property and how much coverage is necessary for you to be protected financially.
Do your research. Find out which insurance companies offer landlord coverage in your area and look at their policy options. Do they offer every type of insurance you need? Do they offer higher levels of coverage? Do they have endorsements available for things like flood or earthquake insurance? Asking these questions can help you find an insurer that fits all of your coverage needs.
Compare coverages. Once you know what your options are, sit down and compare quotes to find out who offers the best coverage at the most affordable rate. You can do this yourself or you can work with a company like Policygenius to help you compare quotes from multiple companies at once.
Things to consider when buying landlord insurance
There are several things you should consider when purchasing a landlord insurance policy, including:
Coverage types: There are multiple types of coverage available as part of your landlord insurance policy, including liability coverage, property damage, and loss-of-rental income protection. Some coverages come standard with a landlord policy while others are optional, so work with an insurance expert to ensure all of your coverage needs are met.
Property type: The type of property you own can impact which types of coverage you need and how much you’ll pay for it. Someone renting out a single-family house has different needs than someone who owns an apartment building, so take that into account when choosing your landlord insurance coverage.
Liability coverage limits: A standard part of landlord insurance, liability coverage pays for damage to others and their property that you are legally responsible for. For example, if your tenant is injured stepping through a loose floorboard, you could be held liable for their injuries. Choosing enough liability protection to cover the value of everything you own is the best way to ensure you’re protected financially if someone is injured on your property.
Loss-of-rental income coverage: Landlord insurance policies typically provide coverage for lost rental income caused by a covered peril. For example, if your rental property catches fire and your tenants have to relocate while repairs are being made, your landlord insurance policy will replace the lost rental income during that time.
Deductibles: Choosing a higher deductible will help keep your rates lower, but you’ll pay more out of pocket when you file a claim. Most landlord insurance policies offer multiple deductible options, so review them carefully to find the right deductible for you.
Exclusions: Every landlord insurance policy has some things it won’t cover, like flooding or earthquakes. Make sure to read the details of your policy so you know what isn’t covered and purchase additional coverage if necessary.
Additional endorsements: Most insurance companies offer endorsements, or add-on coverages, which provide additional coverage for things like floods, earthquakes, or other excluded perils. Adding coverage to your policy will raise the cost of your landlord insurance, but it might be worth it for you to have more comprehensive financial protection.
Financial ratings: Companies like AM Best and Moody’s provide credit ratings for insurance companies, which give consumers an idea of how likely an insurance company is to be able to pay out claims. The higher the rating, the more likely they will be able to pay debts, including claims filed by their customers.
Frequently asked questions
Is landlord insurance required?
Landlord insurance is not required by law, but if you have a mortgage on your rental property, your lender will likely require you to have landlord insurance.
Does homeowners insurance cover rental properties?
No, a standard home insurance policy does not cover damage in a home being used as a rental. Working with an insurance expert is a good way to make sure you have the right type of insurance for your needs.
Is landlord insurance expensive?
It can be, depending on where your rental property is located, the property value, claims history, and other factors. The best way to get the lowest possible rate is to compare quotes from multiple companies through an insurance marketplace like Policygenius.
