Rental Dwellings Insurance is designed for landlords who own residential rental properties that they do not occupy. This includes one- to four-family homes, rowhouses, condos, co-op units, and mobile or manufactured homes.
This type of policy helps protect your investment property from unexpected damages and liability claims. It is tailored to the unique risks faced by property owners who rent out their homes to tenants.
What Rental Dwellings Insurance Covers
Coverage typically includes protection against the following:
- Direct physical damage to the structure from covered perils such as fire, lightning, wind, hail, vandalism, and riots.
- Damage to landlord-owned personal property used to maintain the rental (e.g., appliances, tools, or furnishings in furnished units).
- Premises liability protection in case a tenant or visitor is injured on the property and the landlord is found responsible.
If a covered loss occurs, the policy may help pay for the following:
- Repair or rebuilding of the dwelling and detached structures like garages or sheds.
- Legal defense costs and medical payments for liability claims.
- Loss of rental income while the property is uninhabitable due to a covered event.
Who Needs Rental Dwellings Insurance?
Property owners who rent out residential homes to tenants should consider this coverage. Whether you own a single rental house or multiple small residential units, protecting your property and income from unforeseen events is essential.
Common Exclusions and Limitations
Like most insurance policies, rental dwellings coverage has exclusions and limitations. Common exclusions may include:
- Wear and tear or maintenance issues
- Flood or earthquake damage (usually requires separate policies)
- Tenant’s personal belongings (tenants should obtain renters insurance)
- Illegal activities or intentional damage
Factors That Influence Cost
Several factors can affect the cost of your rental dwellings insurance premium, such as:
- Location and age of the property
- Type of construction and roof material
- Number of units or tenants
- Claims history and coverage limits
- Safety features like smoke detectors and security systems
Proof of Insurance and Compliance
Many states and mortgage lenders require proof of insurance for rental properties. Having an active policy can also help demonstrate responsible ownership and may be required as part of lease agreements or local ordinances. Requirements vary by location, so it’s important to check with local authorities or your insurance provider.
How to Get a Quote
To protect your rental property with the right insurance coverage, get a quote today.
Frequently Asked Questions
What types of properties are eligible for rental dwellings insurance?
Eligible properties typically include one- to four-family homes, condos, co-ops, rowhouses, and manufactured homes used as rentals.
Does this policy cover tenant belongings?
No, tenants’ personal property is not covered. Tenants should purchase their own renters insurance policy.
Is loss of rental income covered if the property is damaged?
Yes, if the damage is caused by a covered peril and the property becomes uninhabitable, the policy may reimburse you for lost rental income.
Can I get coverage if I live in one unit and rent out the others?
Coverage options may vary, but some policies allow for partial owner-occupancy. Speak with your insurance provider to find the right policy.
Does the policy include liability protection?
Yes, most rental dwellings policies include premises liability coverage in case someone is injured on your rental property.
Still have questions? Talk to a local insurance expert.