A Quick Guide to Finding the Best Landlord Insurance

Owning rental property is a significant investment that comes with its own set of complexities and risks. In an ever-changing landscape, safeguarding your assets with the right insurance policy is not only a wise decision but an essential one. Whether you’re renting out a charming single-family home or managing a diverse portfolio of multi-unit complexes, landlord insurance acts as a crucial shield for your investments. It offers protection against unexpected damages, potential lawsuits, and income disruptions that could impact your financial stability.

As repair costs climb and weather patterns become more unpredictable, having robust insurance coverage becomes increasingly important. To navigate these challenges effectively, we’ve crafted a comprehensive guide designed to demystify landlord insurance. This guide will help you explore and compare the best landlord insurance companies for 2025, ensuring you secure the best coverage tailored to your needs, including optional coverage for specific needs.

Whether you’re a seasoned real estate investor or embarking on your first venture, this article will equip you with the knowledge you need to make informed decisions quickly and find the best landlord insurance quote online.

What is Landlord Insurance?

Landlord insurance is a special type of property insurance designed for rental properties. It protects the physical building, your rental income, and your legal liability, which are all things that typical homeowners insurance doesn’t cover once you start leasing your property to tenants. This includes protection against vandalism and other unforeseen events.

If you’re collecting rent, you’re likely required to carry a policy. Even if you’re not required, having one is a no-brainer when your livelihood depends on your investment. Most standard landlord insurance policies include three main areas of protection:

• Property Damage: Covers structural damage from events like fires, storms, vandalism, or theft.
• Loss of Rental Income: Pays for lost rent if your unit becomes uninhabitable due to a covered event.
• Liability Protection: Covers medical and legal costs if someone is injured on your rental property, addressing liability risks.

Depending on your provider, you may also be able to add optional endorsements such as:

• Water/sewage backup coverage
• Equipment breakdown
• Ordinance/law upgrades
• Riot or civil commotion protection
• Vacancy coverage for long-term empty units

Landlord insurance covers many things, but not everything. The most notable exclusions are:

• ​Tenant belongings (that’s what renter’s insurance is for)
• Maintenance-related issues or gradual wear and tear
• Floods or earthquake coverage (typically require separate policies)
• Eviction-related expenses or covered loss from unpaid rent

In today’s dynamic environment, securing comprehensive landlord insurance is crucial to protect your investment and ensure peace of mind.

Who Needs Landlord Insurance?

Landlord insurance isn’t just for large-scale property investors. It’s vital for anyone renting out residential or commercial space. Whether you’re a first-time landlord leasing your basement apartment or a seasoned investor managing multiple properties across state lines, landlord insurance helps protect your financial future.

Below are the scenarios where you should consider landlord insurance.

You rent out any property type.

Whether it’s a single-family home, duplex, condo, townhouse, or a full multi-unit apartment building, landlord insurance is critical. Even short-term or vacation rentals (like those listed on Airbnb or Vrbo) may require specialized landlord coverage to address unique risks associated with turnover, property damage, or guest injuries.

You rely on rental income as a main source of income.

If your rental property is a main source of income–either to cover your mortgage, fund your investments, or pay your bills—you should insure it properly. Loss of rental income due to a covered event (e.g., fire or flood) could be financially devastating if you don’t have protection in place.

You want to protect yourself from lawsuit or catastrophic events.

Landlords can be held legally responsible for accidents, injuries, or damages that occur on the rental premises. Liability protection is included in most landlord policies and covers legal fees, medical costs, and potential settlements. Without it, even a small claim could lead to thousands in out-of-pocket costs or even foreclosure.

If your property is located in a region prone to natural disasters, such as hurricanes in Florida, earthquakes in California, or wildfires in the western states, you need a policy that protects against catastrophic loss. Many landlord policies offer optional endorsements or separate policies (such as flood coverage) tailored to your geographic risk.

You want to stay legally compliant.

Some states, municipalities, or condo associations may have local requirements for rental property coverage. Even if they don’t, requiring tenant renters insurance (which is often allowed under your policy) can help reduce your own risk and liability.

Safeguarding your rental property with comprehensive landlord insurance is a smart investment that protects your assets, ensures financial stability, and keeps you legally compliant in an ever-changing landscape.

The Best Landlord Insurance Companies

Now that we’ve covered what landlord insurance is and who needs it, it’s time to talk about some of the top-rated providers for landlord insurance in 2025. When shopping for landlord insurance, it helps to know which carriers stand out for their coverage options, ease of quoting, financial strength, and suitability for rental property owners.

Below are some of the best landlord insurance companies to consider in 2025.

Obie

Obie is a fast-growing insurtech offering landlord insurance with a fully digital experience. It specializes in policies for real estate investors, property managers, and landlords of all sizes, aiming to simplify coverage through instant quoting and bindable policies.

Pros

• Instant online quotes with no agent required
• Streamlined digital experience
• Focused specifically on rental property owners

Cons

• Not yet available in all 50 states
• Limited long-term claims history
• May lack some specialized policy add-ons available with seasoned providers

Key Features

• ​Tailored policies for single-family, multifamily, and short-term rentals
• Loss of rent and liability protection included in most policies
• Coverage for vacancies, renovation periods, and additional insureds
• Partner integrations with property management tools
• Claims to save users 25% on average compared to other insurance premiums

Obie is best for landlords who value speed, digital-first experience, and modern policy structuring.

Liberty Mutual

Liberty Mutual is a well-established national carrier offering customizable landlord insurance with extensive experience in property-related coverage.

Pros

• ​Solid financial backing
• Many optional coverage upgrades
• Large support network with agents nationwide
• Cheap landlord insurance

Cons

• ​Has exited certain rental markets, [such as CA condos](http://Has exited certain rental markets (e.g. CA condos) Some customers report slow claims response in high-demand periods)
• Some customers report slow claims response in high-demand periods

Key Features

• ​Flexible policy structure with customizable deductibles
• Optional endorsements for theft, water backup, and more
• Offers bundling discounts with auto or umbrella coverage
• Tools for online claims filing and account management
• Available in most U.S. states

Liberty Mutual is best for ​landlords in regions where Liberty still operates with full landlord product offerings.

State Farm

State Farm is known for its long-standing reputation and extensive agent network. It provides basic landlord coverage and good support, especially in rural or suburban areas.

Pros

• ​Highly reputable brand with strong financials
• In-person support through dedicated agents
• Simple, dependable policies

Cons

• ​Slower quoting process (usually not instant online)
• Some rental-specific coverages require endorsements

Key Features

• ​Policies for single-family rentals and rental condo units
• Liability and property coverage
• Discounts for bundling with other State Farm products
• Claims support through the State Farm mobile app
• Local agent availability across the U.S.

State Farm is best for landlords who prefer personalized in-person support and value a reputable brand with strong financials, especially those in rural or suburban areas.

Farmers Insurance

Farmers provides a flexible selection of coverage options with an emphasis on personalization and support for property owners with multiple units.

Pros

• ​Customizable landlord policies
• Optional endorsements like rental loss and personal property
• Name recognition and long track record

Cons

• ​Can be pricier than smaller carriers depending on type and location
• Some policy details may vary by state

Key Features

• ​Dwelling fire and landlord liability coverage
• Optional coverage for malicious damage by tenants
• Multi-property policy options
• Tenant screening services via TransUnion
• Online claims center and dedicated local agents

Farmers Insurance is best for landlords seeking personalized policies and extensive support, especially those with multiple units who value name recognition and comprehensive coverage options.

American Family

American Family is frequently recognized for excellent customer satisfaction and lower-than-average complaints. They offer tailored landlord policies in select states.

Pros

• ​High marks for customer service
• Reasonable pricing with coverage add-ons
• Specialized support for rental owners

Cons

• Not available nationwide
• ​Fewer digital tools compared to insurtech competitors

Key Features

• ​Landlord protection for homes, condos, and multi-units
• Loss of rent and liability coverage
• Optional endorsements for theft, flood, appliance failure
• Discount bundling with other American Family policies
• Helpful online resources and agent guidance

American Family is best for landlords seeking excellent customer service and reasonable pricing with tailored coverage options, especially in select states where availability aligns with their needs.

Tips for Choosing a Good Landlord Insurance Company

No matter where your rental property is located, selecting the right landlord insurance provider is important for protecting your investment and ensuring peace of mind. Here are some practical tips to guide your decision within the insurance industry.

Evaluate the Coverage Options

Look beyond basic fire or liability protection. Make sure the policy includes coverage for common risks in your area such as water damage, theft, vandalism coverage, or natural disasters like hurricanes, wildfires, or earthquakes. If you rent out short-term properties (like Airbnb units), ensure the provider allows for that type of use.

Compare Deductibles and Premiums

A lower premium may come with a higher deductible, and vice versa. Consider how much you’re willing to pay out-of-pocket in the event of a claim. Strike a balance between affordable monthly payments and manageable deductibles.

Check for Optional Endorsements

Great insurance companies offer endorsements (add-ons) that can extend your coverage. Look for things like:

• ​Loss of rental income protection
• Ordinance or law coverage
• Water backup or sewer line coverage
• Extended replacement cost for rebuilds

Look Into Digital Tools & Claims Process

Modern insurers often offer tools to streamline policy management. Check whether they:

• ​Offer instant online quotes
• Allow you to file and track claims digitally
• Provide mobile app access
• Integrate with property management platforms

Read Customer Reviews & Ratings

Check platforms like Trustpilot, Better Business Bureau (BBB), and Reddit to gauge how real customers feel about the provider, especially when it comes to handling claims. Fast, fair, and responsive claims service is often a huge factor in customer satisfaction and reliability.

Assess Customer Service Quality

Some companies rely heavily on agents, while others are fully digital. Decide whether you prefer in-person support or quick online tools. High-quality service should include responsive support via phone, email, or chat, especially during emergencies.

Verify State Availability and Licensing

Always make sure the insurer is licensed in your state and complies with local regulations. You can verify licensing through your state’s Department of Insurance website.

Conclusion

Securing the right landlord insurance is an important step for safeguarding your rental property investments. By understanding the coverage options and selecting a provider that aligns with your specific needs, you can protect against unexpected damages, potential lawsuits, and income disruptions. Whether you’re managing a single-family home or a portfolio of multi-unit complexes, the right insurance policy will ensure financial stability and peace of mind. Use this article to make informed choices and shield your investments effectively.

FAQs

What is landlord insurance?

Landlord insurance is a specialized type of property insurance designed exclusively for rental properties. It covers the building, protects rental income, and includes liability protection, which are not typically covered under regular homeowners insurance policies once the property is rented out.

Why do I need landlord insurance?

Landlord insurance provides protection against unexpected events such as property damage, liability claims, and loss of rental income due to covered incidents. It’s essential for anyone leasing property to ensure financial stability and legal compliance.

What does landlord insurance typically cover?

A standard landlord insurance policy usually includes coverage for property damage (from fires, storms, etc.), loss of rental income, and liability protection (medical and legal costs if someone is injured on the property). Optional endorsements can add additional protections, such as water backup coverage and ordinance upgrades.

Is landlord insurance required by law?

While landlord insurance is not always required by law, mortgage lenders often require it if you’re financing the property. Even if not mandated, it’s crucial for safeguarding your investment.

How is landlord insurance different from homeowners insurance?

Homeowners insurance generally covers an owner-occupied property, protecting personal belongings and providing liability coverage. Landlord insurance, on the other hand, focuses on protecting rental property, covers the building and liability related to tenants, and offers loss of rental income protection.

Can I require my tenants to have renters insurance?

Yes, you can require tenants to carry renters insurance as part of their lease agreement. This helps protect their possessions and can reduce potential liability for landlords.

How can I choose the best landlord insurance provider?

To choose the right provider, evaluate the coverage options, compare premiums and deductibles, check for optional endorsements, review customer service quality, and assess their digital tools and claims process. Additionally, verify state availability and licensing.

What should I do in the event of a claim?

In the event of a claim, promptly report the incident to your insurance provider, gather relevant documentation, and follow your insurer’s claims process closely to ensure a quick and fair resolution.