What is landlord insurance?
Landlord insurance covers a dwelling rented to another person when the owner doesn’t live there. It includes property damage from specific perils, such as fire and storms, liability, including medical and legal costs due to injuries on the property, and loss of rent from covered claims. It’s also known as a dwelling fire policy.
“Landlord insurance policies provide financial protection if your rental property is damaged, becomes unlivable after a catastrophic event such as a fire or a storm, or if someone is hurt on the property. Landlord policies typically include coverage for property damage, liability, and loss of income,” said Mark Friedlander, senior director of media relations at the Insurance Information Institute (Triple-I).
Landlord insurance doesn’t cover the tenant’s belongings or maintenance costs. Additionally, damages from floods, burglaries and vandalism are not covered unless you purchase additional coverage.
Is landlord insurance required in Pennsylvania?
Much like homeowners insurance, Pennsylvania doesn’t require landlord coverage. However, if you have a loan or mortgage on the rental property, the lender will likely require landlord insurance to cover their investment.
Landlord insurance is important even if it isn’t required, since it covers property damage and accidents that may occur on the property.
What does landlord insurance cover?
Landlord insurance covers three main categories for rental properties:
- Property damage. Landlord insurance pays for covered damages to your rental property, such as fire, hail and lightning.
- Liability. If injuries occur on your property, liability coverage helps pay for medical and legal costs resulting from the injury.
- Loss of rent. This coverage helps pay for income loss due to a covered claim. For example, if there’s a fire and the tenant can’t live in the rental and doesn’t pay rent, loss of rent coverage will apply.
What does landlord insurance not cover?
Landlord insurance doesn’t cover anything not listed in the policy, such as the tenant’s possessions, intentional damage, eviction costs or property maintenance.
“Landlord policies do not cover a tenant’s belongings. For example, if the tenant’s vehicle, furniture, artwork, clothing, and electronics are lost in a fire, or if tenants are displaced due to structural damage and need to seek temporary living at a hotel, landlord insurance doesn’t cover that. Many leasing agreements require tenants to purchase a renter’s policy to cover their personal property,” Friedlander says.
Landlords can obtain additional property coverages, such as flood, vandalism, burglary and construction expense coverage. These coverages are not included in a typical landlord policy and can increase rates when added.
Tenants can protect their personal property with a renters insurance policy.
How much is landlord insurance in Pennsylvania?
Landlord insurance in Pennsylvania averages $1,080 but depends on the property and the landlord. For example, older properties that are not in good condition see higher insurance rates since claims are more likely. These rates are based on a dwelling fire policy with coverage ranging from $300,000 to $400,000 for the dwelling, provided by the National Association of Insurance Commissioners (NAIC).
Several factors, including the age and condition of the property, coverage limits, and environmental factors such as weather patterns, determine landlord insurance costs. Understanding these factors can help you estimate your insurance expenses more accurately.
How much landlord insurance do I need?
The amount of landlord insurance you need depends on many factors.
First, consider the cost of fully replacing the dwelling. For example, if you have an apartment building, your replacement costs are much higher than if you own a single-family home.
Next, consider how much liability coverage you need. Medical bills can be expensive and often exceed low policy limits. Increase limits to pay for injuries on your property so you don’t have significant out-of-pocket costs.
Finally, decide if you need protection not usually included in a landlord policy, such as flood, vandalism and burglary coverage. Additionally, you may need to add workers’ compensation coverage if you have employees who are responsible for maintaining the property.
What companies offer landlord insurance in Pennsylvania?
Most major insurance companies, as well as several independent ones, offer landlord insurance. It’s essential to compare quotes from multiple insurers offering landlord insurance in Pennsylvania to find the most affordable rates with the best coverage.
Insurers who offer landlord coverage in Pennsylvania include:
- Travelers
- Liberty Mutual
- Zurich Insurance
- AIG
- Farmers
- Selective Insurance
Landlord insurance vs. homeowners insurance
Landlord insurance covers property that is rented to others. The owner doesn’t live on the property, but tenants occupy it. Coverage is more expensive since tenants may not care for the property as well as the owner would.
Homeowners insurance is specifically designed to cover an owner-occupied dwelling. It is typically less expensive than landlord insurance since the homeowner lives on-site and has a vested interest in maintaining the property.
What is liability on landlord insurance?
Liability coverage on a landlord policy works in much the same way as personal liability insurance on a homeowners insurance policy. It helps pay for injuries that occur on your rental property or property damage for which you are liable. For example, if someone falls down the stairs due to a broken railing, the liability portion of the landlord’s insurance policy pays for medical costs.
Additionally, liability coverage pays for legal fees if you’re sued. So, if someone who fell down the stairs sues you, liability coverage helps cover costs up to your policy limit.
How to get landlord insurance
The first step in buying landlord insurance is to get a quote. You’ll need property information, such as the address and when the dwelling was built. You’ll also need to provide information about any security systems, outbuildings and other details about the dwelling.
Once you get multiple quotes, compare the companies to ensure the one you choose has a good reputation for customer service. Compare numerous quotes to find the best fit.
Finally, the insurer may request to inspect the property to ensure coverage and limits are correct. It’s essential to be honest with the insurer from the beginning to get the best protection for your property.
Sources:
National Association of Insurance Commissioners. “Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owners Insurance Report.” Accessed May 2025.
Landlord insurance in Pennsylvania: FAQs
Do I need landlord insurance for a condo or townhome?
You need landlord insurance regardless of the type of property; it covers all of the structure and internal aspects of the home for which you are responsible. Landlord insurance for a townhouse or condo will differ slightly from that for a single-family home.
How does landlord insurance work if I rent short-term?
You’ll need a commercial insurance policy if you rent out your home or a room on a short-term basis, such as through Airbnb. Homeowners and landlord insurance typically won’t cover your property if you work with a commercial company. However, some insurers offer this coverage as an endorsement.
Does landlord insurance cover tenant damage?
Typically, landlord insurance covers damage caused by tenants for covered events, such as water damage or fire. However, the landlord must pay the policy deductible. Most landlords charge a security deposit that should at least cover the deductible. Some landlords require tenants to have renters insurance to cover damage caused by their negligence.
Does landlord insurance cover loss of rent?
Landlord insurance covers the loss of rent in certain circumstances. For example, if a fire makes the property uninhabitable and the tenants can’t stay there and don’t pay rent, the policy covers the loss of rent. However, if the tenants stop paying rent or for a reason not covered by the policy, the landlord can’t recoup the rent from the insurance.
Do I need contents insurance as a landlord?
Landlord insurance covers some contents. For example, if you leave a lawnmower or snowblower on the property, the landlord’s insurance policy covers it. However, if you furnish the rental, you may need to add content coverage for the items you provide. The tenant should purchase a renters’ insurance policy to cover damage to their possessions.
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