Best Landlord Insurance for 2023

Landlords have to juggle a lot of things that can go very right or very wrong. One way to protect yourself as a landlord is to purchase the right landlord insurance. Here, we share the best landlord insurance providers, talk about how landlord coverage differs from standard homeowners insurance, and help you understand what goes into determining the price of landlord insurance.

Let's take a closer look at each insurer and why it made the list.

Rental property insurance covers a property owner from financial loss related to rental properties. Landlord policy can provide protection from unforeseen repair bills, possible loss of rent, and even the cost of rebuilding the property if there's damage from a natural disaster. Like a homeowners insurance policy, the level of coverage varies depending on the policy chosen.

Typically, the more comprehensive the coverage, the higher the premium. Price isn't the only important consideration, though. It's just as important to find a level of protection that makes being a landlord a little less stressful.

Landlord insurance coverage varies by policy, but typically, a landlord policy covers:

• Property damage to buildings and personal property due to storm, fire, vandalism, theft, and tenant damage. A comprehensive policy will cover replacement costs in a total loss.
• Liability insurance covers the landlord in a liability claim or lawsuit. Let's say a visitor (or even a burglar) is injured on the property. Liability insurance will help cover the costs associated with bodily injury claims.
• Loss of income insurance will help compensate a landlord for rental income lost when no one can live in the rental property due to a covered loss, like fire or storm damage.
• Optional coverages are also available to provide things like rent guarantee, landlord contents, employer liability (if the landlord has employees working on the property), and natural disasters.

Each coverage type is subject to deductibles and limits as stated in the policy.

The primary difference between landlord insurance and homeowners insurance is whether the property owner resides in the home as their primary residence. If a property is the owner's primary residence, they will need a homeowners policy. If they're renting a property to another party, they'll need landlord insurance.

Another difference, according to the Insurance Information Institute (III), is that most landlord insurance policies cost around 25% more than a standard homeowners policy. Landlords need more protection than the average owner.

Many factors go into determining the cost of a landlord insurance policy. They include:

• The geographic location of the property and any known risks associated with that area
• Size of the home
• Whether the property has a burglar alarm
• Number of rental units being insured
• Whether the property has fire sprinklers
• Age and condition of the home
• Age and compliance of electrical wiring
• Whether the landlord allows smokers to rent
• Whether the rental has a swimming pool
• Type and amount of coverage
• Whether a housing complex has gated access

Being a landlord is no joke. There always seems to be an issue to take care of. From dealing with maintenance to determining whether their insurance includes dog breed restrictions, landlords are busy people. Working with the right insurance company can take a huge weight off a landlord's shoulders, leaving them with extra time.

The trick is to shop around. Options vary by insurance provider and costs are all over the map. The best way to ensure adequate property coverage at the lowest possible price is to look at several top rated insurers.