Rental Property Insurance: Costs, Coverage & Savings Tips (2026)

Rental property insurance and landlord insurance are the same type of homeowners insurance coverage designed for rental homes.

Farmers offers the lowest rates starting at $108 per month for $200K in dwelling coverage, up to $164 monthly for $500K policies.

This guide explains coverage options, compares leading insurers, examines the average rental property insurance costs by state, and highlights ways to save. Get started today by entering your ZIP code into our free quote tool.

What a Landlord Insurance Policy Includes

Rental property insurance helps protect landlords from many of the financial risks of renting out a home.

A standard policy typically includes dwelling insurance, covering the rental’s structure against fire, wind, hail, and other covered perils.

Most policies include liability coverage, medical payments coverage, and coverage for detached structures and lost rental income if the property is uninhabitable after a claim or during repairs.

Coverage for landlord-owned items, such as appliances, lawn equipment, or furnishings provided with the rental, is often available as an optional add-on.

Rental Property Insurance Coverage Breakdown

Many insurers will also sell optional endorsements that landlords can select to tailor their coverage to the specific risks associated with their property and each rental arrangement.

Reviewing your policy regularly can help ensure your coverage keeps pace with property improvements, changing rental terms, or rising rebuilding costs.

Standard rental property insurance does not cover flood or earthquake damage, which requires separate coverage or endorsements, and it does not pay for a tenant’s personal belongings, as those are protected by renters insurance.

Damage caused by normal wear and tear, aging, neglect, or routine maintenance issues is likewise excluded from coverage.

Choosing Between Rental Property or Homeowners Insurance

Landlord insurance policies and homeowners insurance are designed for different purposes, so choosing the right policy depends on how the property is used.

Rental dwelling insurance is designed for landlords who rent out houses, condos, or other residential properties, providing coverage for the financial risks of leasing homes to tenants.

Rental Property Insurance vs. Homeowners Insurance Coverage

It can help protect rental income, provide liability coverage, and offer more flexibility than vacant home insurance between leases.

In the rental property insurance vs. homeowners insurance comparison, homeowners insurance is designed for owner-occupied homes and protects personal belongings and everyday household risks.

While both policies cover the home’s structure and detached buildings, neither includes flood damage, making separate flood insurance necessary.

Landlord insurance is also designed to address risks that arise when tenants occupy the property, including liability claims and loss of rental income after a covered event.

Choosing the appropriate policy helps prevent coverage gaps that may occur if a standard homeowners policy is used for a rental property.

If you’re renting your property to tenants, rental property insurance provides landlord protection that aligns with the responsibilities and risks of owning a rental property.

Comparing Average Rental Property Insurance Rates

Comparing rates across multiple coverage amounts and insurers can help landlords find the best balance between affordability and financial protection. Enter your ZIP code for a free quote.

Premiums also vary based on factors such as the property’s location, age, construction type, and claims history.

The cheapest rental property insurance quotes start at $108 monthly, with Farmers offering the best rates and the most customizable coverage.

These top insurers often keep the costs of landlord insurance low by offering bundling discounts, flexible insurance deductibles, and savings for landlords with well-maintained properties.

Rental Property Premiums for Different Policies

Farmers offers the lowest rates, ranging from $108 to $164 per month, while Mercury and Progressive follow close behind.

Allstate remains another budget-friendly option, with rates from $111 to $168 per month and a variety of optional coverages.

Rental Property Insurance Monthly Rates by Coverage Amount

While affordability matters, the best rental property insurance provider should also offer reliable protection and service.

State Farm is known for financial strength and claims service, while AAA stands out for dependable customer support. See More: State Farm vs. Progressive Insurance

How Location Affects Landlord Insurance Prices

Each state has unique insurance regulatory environments that can affect the cost of rental property insurance.

Home insurance by state also varies due to local crime rates, wildfire exposure, and regional construction costs, all of which can significantly influence monthly premiums.

In this comparison, Nevada has the lowest monthly rates, ranging from $52 to $78, due in part to its lower exposure to major natural disasters.

Missouri falls in the middle, with premiums between $105 and $158 per month, reflecting moderate weather risks such as hail, tornadoes, and severe storms.

Florida has the highest landlord insurance rates, ranging from $279 to $421 per month, driven by frequent hurricanes, coastal storm damage, and higher construction costs.

As a result, rental property insurance and home insurance premiums can vary significantly, even for properties with the same coverage amount in different states.

Rental Coverage Policies Vary Based on Property Risks

Insurance premiums for rental properties differ by property type since the number of units affects risk, as well as the maintenance costs and potential liabilities a property may hold.

These differences also help explain why rental property insurance vs. homeowners insurance costs can vary, as rental properties often present greater repair expenses and liability risks.

Rental Property Insurance Monthly Rates by Type & Risk

Apartments, condos, and townhomes have the lowest monthly rates, ranging from $79 to $96, since they often have lower repair costs and fewer maintenance responsibilities for landlords.

Among the different types of home insurance, single-family rental homes and duplexes fall in the middle, with premiums ranging from $110 to $122 per month.

Triplexes and fourplexes have the highest landlord insurance rates, ranging from $134 to $147 per month, due to increased liability exposure, higher rebuilding costs, and more tenants under one roof.

Comparing rental property insurance rates by property type makes it easier to choose the best landlord insurance for your property’s unique risks and coverage needs.

How Insurers Differ in Coverage and Add-Ons

Rental property insurance coverage varies by insurer, particularly in the standard protections and optional endorsements included with each policy.

Liberty Mutual and Nationwide offer some of the most complete landlord insurance options in this comparison, with several key coverages included as standard.

Rental Property Insurance Coverage Options by Provider

Allstate and State Farm are also strong choices, though extended dwelling coverage may require an additional endorsement.

Farmers include key coverages by default, while other insurers offer optional add-ons or limited protections. Compare rental property insurance quotes to find the right coverage and value.

Read More: Best Insurance Comparison Sites

Ways to Save on Rental Dwelling Insurance

Many insurers offer discounts that can make rental property insurance more affordable, with some of the best home insurance discounts also available to eligible landlords.

The biggest savings typically come from bundling, with many rental property insurance companies offering discounts of 10% to 25% for multiple policies.

Most Common Rental Property Insurance Discounts

Landlords may also qualify for 10% to 20% savings by maintaining a claims-free history or replacing an older roof.

Maximize landlord insurance discounts with higher deductibles, multiple properties, automatic payments, and other eligible savings.

Find the Right Rental Property Insurance Plan

Rental property insurance and landlord insurance are the same policy, offering protection beyond what the best home insurance companies provide for owner-occupied homes.

With Farmers offering rates starting at $108 per month for $200K in dwelling coverage, finding affordable landlord insurance is easier while still customizing coverage to fit your property’s needs.

Choosing the right rental property insurance policy can help protect your investment, reduce unexpected expenses, and provide long-term financial security.

Finding affordable rental property insurance starts by comparing landlord insurance quotes. Enter your ZIP code to compare rental property insurance rates from top providers and find the right coverage for your rental property at a competitive price.