~25%Typical extra cost vs. homeowners for the same property
3Main policy forms: DP-1, DP-2, DP-3
0Tenant belongings covered by your policy
$100,000+Typical minimum liability to consider
Key takeaway: If you rent out a home you don’t live in, a standard homeowners policy usually won’t cover it. You need a landlord (dwelling fire) policy, which covers the building, your liability and lost rent after a covered loss. It typically costs about 20% to 25% more than a homeowners policy for the same property. Your tenants’ belongings aren’t covered, so require renters insurance in the lease.
How we put this guide together: Coverage and cost information comes from Hippo’s landlord insurance guide (citing the Insurance Information Institute) and state regulator consumer guides from Washington and Maryland. Figures were checked in October 2026 and vary by state, home and insurer. See our advertiser disclosure.

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Why homeowners insurance isn’t enough

Homeowners policies are written for owner-occupied homes. Renting out the whole property changes the risk: there’s nobody living there who owns it, and there’s business income at stake. Many homeowners policies exclude or limit business activities, so a fire or liability claim at a rental may be denied if you haven’t told your insurer. Tell your insurer before you rent, even short-term.

What landlord insurance covers

CoverageWhat it pays for
DwellingRepairs to the rental building after fire, wind, hail, lightning and other covered perils
Other structuresDetached garages, fences, sheds on the property
Fair rental value / loss of rentRent you lose while the property is uninhabitable after a covered loss
Landlord liabilityLegal and medical costs if a tenant or visitor is injured and you’re responsible
Landlord’s propertyItems you provide for the rental, such as appliances or furnishings (limits vary)

Source: Hippo landlord insurance guide, citing the Insurance Information Institute.

Landlord policies don’t cover your tenants’ belongings, routine maintenance or wear and tear, or a home you live in yourself. Flood and earthquake are excluded just as in homeowners policies; see our flood guide.

Policy types

  • DP-1 (basic): named perils such as fire, lightning and explosion. Often settles at actual cash value. Cheapest, with the narrowest cover.
  • DP-2 (broad): more named perils, such as burst pipes and the weight of snow and ice, and often replacement cost.
  • DP-3 (special): covers the dwelling against all perils except those excluded, usually at replacement cost. The most common choice for single-family rentals.

Liability and loss of rent are sometimes add-ons rather than built in, so check the quote.

What it costs

Hippo, citing the Insurance Information Institute, says landlord insurance typically costs about 20% to 25% more than a homeowners policy for the same property; a $1,000 homeowners policy might be about $1,200 to $1,250 as a landlord policy. Price depends on the same factors as homeowners insurance (location, rebuilding cost, roof and claims history), plus the number of units and whether the rental is long-term or short-term. Premiums on rental property are generally a deductible business expense; ask your tax adviser.

For comparison, average homeowners premiums were about $2,948 a year at the end of 2025; see our cost guide.

Short-term rentals

If you rent through Airbnb or Vrbo, standard landlord policies may also exclude or limit short-term stays. Platform host protections are not a substitute for insurance. Ask your insurer for a short-term rental endorsement or a policy designed for vacation rentals.

Protecting yourself through the lease

  1. Require renters insurance with liability cover, and ask to be listed as an interested party so you’re notified if it lapses. See our renters insurance coverage guide.
  2. Raise your liability limit to at least $300,000, and consider an umbrella policy if you own several properties.
  3. Inspect regularly and keep maintenance records; insurers won’t pay for neglect.
  4. Bundle rentals with your own home and auto policies where possible; see our discounts guide.
  5. Consider an LLC and commercial policy if you own several units. See our general liability guide.

Frequently asked questions

Do I need landlord insurance to rent out my house?

Usually yes. Homeowners policies are for owner-occupied homes, and many exclude rental activity. Mortgage lenders also typically require appropriate cover for a rental.

How much more is landlord insurance than homeowners insurance?

About 20% to 25% more for the same property, according to Hippo, citing the Insurance Information Institute.

Does landlord insurance cover tenant belongings?

No. Tenants need their own renters insurance, and many landlords require it in the lease.

What is the difference between DP-1 and DP-3?

DP-1 covers only a short list of named perils, often at actual cash value. DP-3 covers all perils except exclusions, usually at replacement cost.

Does landlord insurance cover lost rent?

Yes, if the policy includes fair rental value or loss of rents cover, and the property is uninhabitable because of a covered loss.

Sources

Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.