Insuring a property that you rent to tenants—or use as a dwelling but do not live in—requires the right type of protection. Standard homeowners insurance won’t provide the coverage you need. Instead, you should consider landlord insurance, also called dwelling fire insurance. These policies are designed specifically for rental properties and non-owner-occupied homes.

They help protect against the unique risks landlords face. That includes damage to the property, legal liability, and loss of rental income. Here are the key coverages to consider when insuring your rental property:

Dwelling Coverage

Dwelling coverage protects the structure itself. That means the house, condo, duplex, or apartment you rent out. It also covers attached structures like garages, porches, and decks. If your rental property is damaged by fire, lightning, hail, windstorms, or other covered perils, this coverage helps pay for repairs or rebuilding. Without it, you would need to pay out of pocket to restore the property.

Liability Coverage

As a landlord, you’re responsible for keeping the property reasonably safe. If a tenant or visitor gets injured because of unsafe conditions—like a loose handrail or icy steps—you could be held liable. Liability coverage protects you from these claims. It helps cover legal defense costs, medical bills, and potential settlements or court judgments. This is one of the most important coverages for any landlord, especially those with multiple units or high foot traffic.

Loss of Rental Income Coverage

If your property becomes uninhabitable due to a covered event, such as a fire or storm, you won’t be able to collect rent. Loss of rental income coverage helps you recover the money you would have earned while repairs are being made. This allows you to keep paying the mortgage, property taxes, or other ongoing expenses even when the property is temporarily vacant.

Personal Property Coverage (Optional)

Landlord insurance doesn’t cover tenants’ belongings. However, if you furnish the rental unit with your own items—such as appliances, furniture, or decor—you can add personal property coverage. This protects your items from damage caused by covered risks. It’s especially useful for landlords who offer furnished rentals, vacation properties, or short-term lease units.

Vandalism and Malicious Mischief Coverage

Unfortunately, not every tenant treats a rental property with care. Vandalism coverage protects against intentional damage. This can include broken windows, graffiti, or damage to fixtures and appliances. Without this coverage, you may be stuck paying for costly repairs caused by destructive behavior.

Fair Rental Value Coverage

Fair rental value coverage is similar to loss of rental income coverage, but it’s based on what your property could reasonably rent for. If a covered event forces you to pause rental activity, this coverage helps replace the expected income. It gives you a financial cushion during the repair period, even if the property wasn’t currently occupied at the time of loss.

Additional Coverages to Consider

Every rental property is different. That’s why many landlord policies allow you to customize your coverage. Depending on your situation, you may want to add:

• Detached Structures Coverage: Protects fences, sheds, and stand-alone garages.

• Flood Insurance: Essential if your rental is in a flood zone (not covered by standard policies).

• Earthquake Coverage: Valuable in areas with seismic activity.

• Ordinance or Law Coverage: Covers the cost to bring your property up to code after a covered loss.

• Equipment Breakdown: Helps pay for repairs to major appliances or systems you provide, such as HVAC units or hot water heaters.