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Key Takeaways
If you're a landlord trying to figure out what you should be paying for insurance, you're not alone. Landlord insurance costs are among the most common questions independent landlords search for, and the answer is frustratingly vague most of the time.
The truth is that landlord insurance premiums vary significantly from state to state, property to property, and carrier to carrier. But there are real numbers and patterns you can use to figure out whether you're paying too much, too little, or about right.
This article breaks down what landlord insurance costs in 2026, what drives the price up or down, and how to get a better rate without cutting the coverage you need.
Landlord insurance is a specialized type of property insurance designed for rental properties rather than owner-occupied homes. Because rental properties carry different risks (higher wear and tear, liability from renters and guests, loss of rental income), they cost more to insure.
According to industry data from the Insurance Information Institute, landlord insurance costs roughly 25% more than a standard homeowners policy on the same property. The national average for homeowners insurance sits around $1,192 per year. For landlord insurance, that figure climbs to approximately $1,478 per year.
That said, those national averages can be misleading. Your actual landlord insurance cost depends heavily on where your property is located and what kind of coverage you carry. A landlord insuring a single-family rental in Iowa will pay far less than someone insuring a coastal duplex in Florida.
The biggest factor in your premium is how much dwelling coverage you carry, which is the amount your insurer will pay to repair or rebuild your property after a covered loss.
Here's what landlord insurance typically costs in 2026, broken down by dwelling coverage level:
Most independent landlords with a single-family rental fall somewhere in the $300,000 dwelling coverage range, which puts their annual premium between $900 and $1,800. If you're a first-time landlord setting up your budget, this is the range to plan around.
The widespread within each tier comes down to the other factors listed below.
Your dwelling coverage amount sets the baseline, but several other variables push your premium higher or lower.
This is the single biggest variable after coverage amount. States with high exposure to hurricanes, tornadoes, wildfires, or hail (Texas, Florida, Louisiana, Oklahoma, California) consistently see higher landlord insurance rates. Coastal properties within those states cost even more. Landlords in lower-risk inland states such as Ohio, Indiana, or Idaho tend to pay premiums at the bottom of their respective tiers.
A single-family home is the cheapest to insure. Multi-family properties (duplexes, triplexes, small apartment buildings) cost more because there are more units, more renters, and more liability exposure. Condos are typically cheaper since the building's exterior and common areas are covered by the HOA's master policy.
Insurance carriers care a lot about your roof. An older roof or one made of materials prone to damage (wood shingles in a hail zone, for example) will increase your premium. A newer roof in good condition can lower it. Some carriers won't even write a policy if the roof is past a certain age.
Higher coverage limits mean higher premiums. This applies to both dwelling coverage and liability coverage. On the flip side, choosing a higher deductible (the amount you pay out of pocket before insurance kicks in) will lower your annual premium. A $2,500 deductible will cost less per year than a $1,000 deductible on the same property.
If you've filed claims on the property in the past three to five years, your insurer will factor that into your rate. Multiple claims signal higher risk, which means higher premiums. A clean claims history works in your favor.
Short-term rentals (Airbnb, VRBO) carry higher liability risk due to frequent guest turnover, unfamiliarity with the property, and increased wear and tear. Insurance carriers price that risk into the premium. On average, short-term rental policies cost 20 to 30% more than comparable long-term rental policies.
If you've recently converted your home into a rental and you're deciding between short-term and long-term rentals, the difference in insurance costs is worth factoring into that decision.
Before you compare prices, it helps to know what you're paying for. Standard landlord insurance policies include:
Dwelling coverage protects the physical structure of your rental property against damage from fire, storms, hail, lightning, vandalism, and other covered perils.
Liability coverage protects you if a renter or their guest is injured on your property and files a claim or lawsuit against you. Most landlord policies offer $300,000 to $2 million in liability coverage.
Loss of rental income reimburses you for the rent you lose if a covered event (like a fire or major storm damage) makes your property temporarily uninhabitable. This is one of the biggest differences between landlord insurance and a standard homeowners policy.
Personal property coverage covers items you own and keep at the rental for maintenance, such as appliances, lawn equipment, or tools. This does not cover your renters' belongings. Your renters need their own renters insurance for that.
What landlord insurance typically does not cover includes flood damage (requires a separate flood insurance policy), earthquake damage (requires a separate policy or endorsement), normal wear and tear from renters, and pest infestations.
If your premium feels high, there are a few practical ways to bring it down without gutting your coverage.
Bundle multiple properties. If you own more than one rental, insuring all of them with the same carrier often qualifies you for a multi-policy discount.
Install safety devices. Burglar alarms, fire sprinklers, smoke detectors, deadbolts, and motion-sensor lighting can all reduce your premium. Some carriers offer discounts of 5 to 15% for properties with active safety systems.
Raise your deductible. Moving from a $1,000 to a $2,500 deductible can meaningfully lower your annual cost. Just make sure you have enough cash on hand to cover that deductible if you need to file a claim.
Shop around. Landlord insurance rates vary significantly between carriers. Getting quotes from at least three providers gives you a real picture of the market for your specific property. If you want a fast starting point, Steadily generates quotes in minutes and specializes exclusively in landlord insurance.
Review your coverage annually. Your property's rebuild cost, local risk factors, and your own financial situation change over time. An annual review ensures you're not overpaying for coverage you don't need or underinsured for coverage you do.
Landlord insurance is not legally required in most states. But that doesn't mean it's optional in practice.
If you own a rental property outright with no mortgage, you could technically skip it. But one fire, one liability lawsuit, or one extended vacancy due to storm damage could cost you far more than years of premiums combined.
Consider a simple example: your rental brings in $1,500 per month. A kitchen fire makes the unit uninhabitable for four months while repairs are completed. Without loss of rental income coverage, you lose $6,000 in rent on top of whatever the repair costs are. A standard landlord policy with that coverage would have cost you roughly $1,200 for the year.
The math works in insurance's favor almost every time. You can plan what landlord insurance costs into your annual expenses alongside other key tax deductions for landlords, since the full premium is deductible as a business expense.
Yes. Landlord insurance typically costs 15 to 25% more than a homeowners policy on the same property. The higher cost reflects the added risks associated with rental properties, including liability for renters and guests, loss of rental income coverage, and increased wear and tear. For a detailed comparison of what each policy covers, see our guide on landlord insurance vs. homeowners insurance.
In most states, landlord insurance is not legally required by law. However, if you have a mortgage on the property, your lender will almost certainly require you to carry insurance as a condition of the loan. Even without a lender requirement, going without coverage exposes you to significant financial risk.
No. Standard landlord insurance policies do not include flood coverage. If your property is in a flood zone or an area with flood risk, you'll need a separate flood insurance policy. The National Flood Insurance Program (NFIP) through FEMA is the most common option, though private flood insurers are also available in many states.
Yes. The IRS allows landlords to deduct the full cost of landlord insurance premiums as a business expense for the rental property. This applies to all types of coverage on the policy, including dwelling, liability, and loss of rental income. Consult your accountant for specifics, and check the Insurance Information Institute's guide to property insurance for additional context on coverage types.
Landlord insurance costs depend on your property's location, its value, and how much coverage you carry. For most independent landlords with a single-family rental in the $300,000 dwelling coverage range, expect to pay between $900 and $1,800 per year.
That cost is a fraction of what you'd lose in a single uninsured incident. Whether it's a fire, a liability claim, or months of lost rental income, the right landlord policy pays for itself the first time you need it.
If you want to see what your specific property would cost to insure, get a free quote from Steadily. They focus exclusively on landlord insurance and can generate a quote in minutes.
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