Landlord insurance

Landlord insurance policies could often be most beneficial for:

• Commercial lessors
• Residential landlords
• Property owners
• Real estate agents

Note that for commercial landlords, this type of business insurance coverage can be called Lessor’s Risk Only (LRO) or commercial landlord insurance.

Landlord insurance could help protect you from a range of risks, including:

• A tenant or visitor slips in a common area and sues for medical costs
• A storm damages multiple windows, forcing tenants to move out during repairs
• A burst water pipe floods multiple units and disrupts rental income
• A fire or vandalism causes damage to the building structure

Without landlord insurance coverage, these costs would need to be paid 100% out-of-pocket.

Both homeowners insurance and landlord insurance could help cover the physical building itself if it’s damaged by perils such as a fire, windstorm or vandalism, as well as liability if someone is injured on the property

Standard homeowners insurance is usually bought by the person who owns and lives inside a residence. It often covers the homeowner’s personal belongings and additional living expenses (such as food and clothing) if they’re suddenly displaced from their home after a covered event.

Landlord insurance is usually bought by the property owner for spaces rented out to tenants. It usually includes coverage for lost rental income if the property becomes uninhabitable after a covered event.

The core protections of landlord’s residential insurance and commercial property landlord insurance are similar. Commercial landlord insurance (also called lessor’s risk insurance) may include higher liability limits or additional coverage options based on tenant activity and property use.

Yes, a separate policy for landlord rental insurance is usually needed for each property. Landlord’s insurance is often written per property, especially for commercial or mixed-use buildings. This enables your coverage to reflect the specific risks, value and tenants associated with each location.

Vacant properties can carry risk and may not be covered under a standard landlord policy. If your property is vacant for an extended period, you may need additional or specialized coverage to keep it protected.

Some landlord insurance policies may cover accidental damage caused by tenants, but intentional damage or neglect may not be included. Many landlords require a security deposit or damage deposit from their tenants or require tenants to carry tenant insurance to help fill these gaps.

Many landlords require tenants to carry their own insurance. This can help protect the tenant’s belongings, personal property and liability – and reduce the risk that claims will fall back on you as the property owner.

Yes. Liability coverage is often a part of landlord insurance policies to help protect property owners if they’re sued over an injury or property damage claim. It may also help cover legal defense costs, settlements and judgments.

Even if you hire a property manager, you’re still the property owner and you can be held liable for injuries and damages. A property manager may carry their own insurance, but it typically doesn’t replace the need for your own landlord policy.

If you manage properties but don’t own them, landlord insurance won’t apply. Property managers could benefit from their own general liability insurance for on-site risks and errors and omissions insurance for claims related to their professional services, such as leasing, maintenance oversight or tenant communication.

Yes, a landlord insurance policy can be called lessor insurance, Lessor’s Risk Only, or LRO by industry professionals such as insurance agents and insurance brokers.

Without landlord insurance coverage, you could be held fully responsible for the costs of repairs and legal claims against you — and run the risk of lost income. For many landlords, even a single event could create significant financial strain or wipe out years of equity.