Landlord Insurance Guide: What Does Landlord Insurance Cover

Landlord Insurance

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Deciding to buy land is a significant decision. It’s an investment that you’ll want to protect like a child. Whether it’s a small plot or a beachfront property in the city, it may all fit your bill. Your land is your pride, no matter what its size or area it is. If you purchase land insurance, you wish to safeguard it from harm. So, what exactly is land insurance?

A kind of property protection is called landlord property insurance, which shields your property against money-related misfortunes welcomed by damages. We will learn more about landlord insurance in this article, including what it does and doesn’t cover and how much it costs.

What is landlord Insurance?

Landlord Insurance is a type of property protection that protects against monetary misfortunes welcomed by damages to rental property. The damages caused by fire, storms, floods, quakes, and other normal calamities are covered by the landlord’s insurance. It could likewise incorporate misfortunes welcomed by housebreaking, defacing, and other neglectful or dangerous activities.

Any landowner ought to think about purchasing property manager insurance. Your financial, as well as your emotional well-being, might be secured, or let’s say, mental health also be in safe hands. If you are a landlord, I advise comparing prices for insurance from different or various organizations and getting an inclusion that suits your specific needs.

Also, Learn more about renters insurance in Oklahoma.

Landlord Insurance Cost

The area, size, coverage needs, and insurance agency you choose are the cost of landlord insurance vary depending on various factors. A sensible gauge for property manager insurance is $2,000 each year. You should get quotes from a few different insurance companies to gauge the landlord insurance cost for your property.

For example, a property in a high-risk area for flooding will most likely have more costly insurance rates than one in a generally safe region. The expense of insurance will likewise have higher insurance rates than for smaller ones. Additionally, a property in inadequate condition will likely have more excellent insurance rates than one in great condition.

I suggest reaching the insurance agency that gives landowner insurance in Oklahoma to get exact statements. State Farm, Allstate, Progressive, and Farmers Insurance are some dependable insurance companies that give landowner insurance. It’s likewise genius to talk with an insurance professional or agent who can help you explore the cycle and help you find suitable coverage based on your specific needs and budget.

Types of Landlord Insurance Policies

Landlord Insurance comes in three different types. Here are some of them:

Types of Landlord Insurance Policies


The least expensive and the basic level of coverage is DP-1. Since it is a peril policy, it covers its specific perils. DP1 frequently covers risks, including fire, lightning, wind, hail, blast, and defacement. Dp-1 is the best choice for investment properties with lower esteem or landlords concerned about insurance costs.


Although DP2 is named peril policy, it offers more extensive perils than DP1. Each peril covered by DP1 and different perils, including robbery, falling items, and water damage from plumbing leaks, are often remembered as the risks covered by DP2. DP-2 is the best choice for Rental properties with a high worth or for landowners who need the broadest coverage. It is more expensive than DP-1.


It is the most costly and comprehensive of all the landlord insurance policies. Except for DP3, an open peril policy, all perils are covered under those. It is appropriate for land or rental properties with the highest value explicitly avoided by the insurance and who need the most complete inclusion. War, nuclear hazards, and ordinances or regulations are, as often as possible, perils excluded from DP3.

The expense of DP1, DP2, and DP3 fluctuates depending upon the worth of the property and the level of coverage. On the off chance that you are worried about the expense of insurance, consider a DP1 contract. In any case, if you need the most thorough, think about a DP3 strategy.

Who Needs Landlord Insurance?

Even though it isn’t legally necessary in most states, property manager insurance is an intelligent thought for all landowners. The following people should contemplate having landowner insurance:

Owners of Rental Properties:

This is the most social group that requires property manager insurance. Rental homes have the risk damage of being harmed by various things, including burglary, defacement, fire, water, wind, and hail. If the property is obliterated, landowner insurance can assist with paying the expense of fixes or substitutions. Landowner insurance can help fix or reconstruct costs if a fire harms your investment property. If the property can’t be involved, it can likewise support covering the cost of a lost lease.

Recommended Article: How to Manage Rental Properties

Mortgaged Rental Properties:

Many home loan banks request landowners convey property manager insurance before they concede a credit. It is fundamental because the loan specialists need to guarantee that the property is protected in case of misfortune and that the landowner will want to make contract installments regardless of whether the property is harmed or obliterated.

For example, if a fire harms your investment property and you can’t pay your home loan, your moneylender might be able to dispossess the property. It can be kept away from the utilization of property manager insurance.

Landlords Across Different States:

Each state has various guidelines concerning property manager insurance. Property managers who dwell in states other than those where their investment properties are found are expected to get insurance that agrees with nearby guidelines. In addition, landlords who rent to tenants with pets must carry supplementary liability insurance in some areas.

Liability for Landlords:

Tenants might record claims against landowners for various reasons, including when one has a physical issue while on the property. Property managers might discover some assurance from these obligation claims through landowner insurance. Landlord insurance, for particulars, can help cover the tenant’s medical and other expenses if they are hurt on your property in a fall.

Landlords who rent to tenants will likely have an accident:

The probability of mishaps changes across various inhabitants. Youthful people and undergrads, for example, are almost more sure than more established grown-ups to be engaged in mishaps. If your tenants are inclined to mishaps, consider getting property manager insurance. For example, landlord insurance could help care for the inhabitant’s clinical expenses and misfortunes if they slip and fall on your property and get injured.

If you are a landlord, I encourage property managers to review insurance providers from different suppliers before making plans. Furthermore, affirming that the policy provides sufficient asset insurance safeguards would be best.

How Does Landlord Insurance Differ From Homeowner’s Insurance?

Landlord insurance and homeowner’s insurance differ in several ways. Here are some of the key differences between the two types of insurance policies:

Landlord Insurance:

  • It is Explicitly designed for rental properties that tenants occupy.
  • In case of tenant-related damage, certain disasters, or obligation claims, it includes the landowner’s income and the safeguarded property.
  • Incorporates expert insurance contracts, for example, loss-of-income coverage if an investigated misfortune brings about a tenant move-out.
  • It covers the rental property structure, any personal property owned by the landlord used to maintain the property, and liability protection for the landlord.
  • It frequently costs 25% more than a standard property holder’s insurance.

Homeowner’s Insurance:

  • Homeowner’s insurance is designed for owner-occupied homes.
  • It covers the property holder’s assets and structure in a disaster.
  • Additionally, it provides a mortgage holder peril insurance.
  • Does not pay for misfortunes from rental or tenant-related damages.

In summary, landlord insurance protects rental properties and the landlord’s income, while homeowner’s insurance protects owner-occupied homes and personal property. Compared with homeowner’s insurance, landowner insurance offers extra coverage. Despite homeowner’s insurance, which exclusively covers the property and individual assets of the homeowner, landowner insurance covers both their property and responsibility.

What Does Landlord Insurance Cover?

Landlords must have sufficient insurance coverage to safeguard their rental properties, themselves, and their tenants. The following are some of the essential terms to consider that landlord insurance covers:

What does Landlord Cover

Landlord Property Insurance: This coverage safeguards your property’s genuine structure against gambles with fire, defacing, and regular fiascoes. It could incorporate any private property you have nearby, including furniture or machines. This insurance does not cover the tenant’s belongings; recalling that is indispensable.

Liability Insurance: If somebody is harmed on your property and you are expected to take responsibility, risk protection will safeguard you. Legitimate charges, clinical expenses, and likely settlements or court grants emerging from claims are entirely covered. This insurance is fundamental since it helps safeguard your resources from harm brought about by accidents supported while leasing your property.

Loss of Rental Income Insurance: If your property is delivered dreadful because of a covered misfortune, such as fire or storm harm, this inclusion helps compensate for lost rental pay. During the time it takes to fix the property and find new leaseholders, it can offer monetary help.

Tenant Discrimination Insurance: While screening tenants, this insurance safeguards property managers against allegations of segregation because of racial, orientation, or impediment contemplations. It can support settling the expense of guard and potential monetary misfortunes welcomed on by such cases.

It’s important to note that the specific coverage and policy terms may vary depending on the insurance company. It is advisable to talk with an insurance agent who can assess what is going on to decide the exact inclusion you expect for your job as a landowner.

What Is Not Covered By Landlord Insurance

Landlord insurance typically safeguards their rental properties, themselves, and their tenants, but this type of insurance typically does not cover certain things. Some standard exclusions may include:

Tenant’s Belongings: You might be surprised to learn that, in most cases, landlord insurance does not cover tenants’ goods that are damaged or stolen during an insured natural catastrophe like a flood or hailstorm. The tenant is responsible for getting their tenant’s insurance to safeguard their possessions.

Tenant Negligence: The damages caused by the tenant’s careless negligence or intentional acts may not be covered. Landlord insurance frequently rejects deliberate ways of behaving from inclusion.

Vacant Property: A few plans might restrict or reject inclusion for explicit risks, for example, defacing or water harm, if your property is empty for a drawn-out timeframe, regularly 30 days or more.

Illegal Activities: Landowner insurance frequently doesn’t cover damage or obligation because of criminal behaviour perpetrated by the property manager or tenants. Landowner insurance may not cover the obligation if it results from illegal exercises like medication make or other crimes.

Maintenance and Equipment Breakdown: The landlord’s insurance does not cover damage caused by a malfunctioning dishwasher in your rental property. The cost of replacing the dishwasher or repairing your rental home must come from your own money.

To comprehend what is and isn’t covered, it’s essential to carefully review the agreements of your specific property manager insurance thoroughly.

Here take a look at Oklahoma Lease Termination Notice

Questions to Ask Your Landlord Insurance Broker

The questions that you can ask your landlord insurance broker are listed below:

  1. What coverages are included? Understanding your policy inclusion for things like property harm, responsibility, and loss of rental pay is significant.
  2. What are the deductibles for each type of coverage? The deductible is how much money you should spend before the insurance supplier starts paying for a case.
  3. Are there any discounts available? Smoke alarms, security frameworks, and having different home insurance with a similar guarantor are only some things that regularly fit the bill for investment funds.
  4. What is the process for filing a claim? If something happens to your property, it is essential to appreciate the case documenting technique. The method will change because of the insurance provider.
  5. What is the maximum amount of coverage available? The most that the insurance provider will settle a case is the most excellent measure of coverage. Confirm assuming the most extreme measure of coverage is adequate to cover the worth of your home.
  6. What steps must I take to keep my policy active? There are, in many cases, specific things that you want to do to keep your arrangement dynamic, for example, paying the charges on time. It is critical to understand what these requirements are.
  7. What are the renewal terms? The renewal terms put forward the policy for reestablishing your insurance. Understanding these expressions is critical so you are not shocked when your arrangement is up for renewal.
  8. What is the process for changing my policy? Understanding the procedure is vital if you want to change your approach, such as expanding or wiping out inclusion. Depending on the insurance provider, the system will change.

How to Get the Best Landlord Insurance Rate?

To get the best landlord insurance rate, consider the following tips:

How to get the best Landlord Insurance Rate

Shop Around and Compare Quotes: Try to make a valid comparison while contrasting rates from different insurance agencies. Acquiring citations for a similar strategy cutoff points and deductibles is required. Furthermore, it would help if you enquired about expected decreases.

Ask About Bundling: You could set aside cash by packaging your insurance plans if you have other inclusions, like homes or accident coverage. It is because clients with numerous arrangements with insurance suppliers often get limited.

Consider Discounts: Smoke alarms, security frameworks, and having different homes guaranteed with a similar backup plan are only a few instances that habitually meet all requirements for reserve funds. Inquire as to whether any limits may be accessible to you.

Ask About Seasonal Rates: A few insurance firms give lower costs during the slow time of year, such as cold weather. It is because these are when rental homes are most drastically averse to supporting damage.

Improve Property Security: The risk of harm or robbery can be diminished by introducing security frameworks like smoke alarms, criminal alerts, and deadbolt locks, which might reduce insurance costs.

Review Your Policy Annually: It is crucial to look at your strategy once yearly to guarantee that you have the fitting inclusion because your insurance necessities might differ after some time. To ensure you are as yet getting the ideal rate that anyone could hope to find, you ought to assess your strategy also.


All in all, Landowner insurance is a critical shield to safeguard your land venture against various risks. Our OKC property manager company specialists are focused on helping you choose property insurance. We’re here to smooth the cycle and help you choose the best property manager insurance. Contact us today if you have any inquiries or need professional help.

FAQs on Landlord Insurance

scott nachatilo


Scott Nachatilo is an investor, property manager and owner of OKC Home Realty Services – one of the best property management companies in Oklahoma City. His mission is to help landlords and real estate investors to manage their property in Oklahoma.