Landlord Insurance Calculator
Estimate landlord insurance premiums based on property value, coverage type, and optional riders.
Results
Visualization
How It Works
Landlord insurance (dwelling fire policy) protects rental property owners against property damage, liability claims, and lost rental income. It costs 15-25% more than standard homeowner's insurance because tenants pose additional risk.
The Formula
Variables
- Coverage Rate — Annual premium as percentage of value (0.3-0.7% depending on coverage level)
- Liability — Protection against tenant injury claims ($100K-$2M)
- Loss of Rent — Covers lost income when property is uninhabitable due to covered event
Worked Example
$350,000 property with standard DP-2 coverage: Property = $1,750, Liability ($300K) = $300, Loss of rent = $350. Total = $2,400/year ($200/month).
Practical Tips
- DP-3 (premium) covers all perils except explicitly excluded ones — best protection for landlords.
- Require tenants to carry renter's insurance — it covers their belongings and provides additional liability coverage.
- Umbrella insurance ($1M+ for ~$200-400/year) is essential once you own multiple properties.
- Bundle landlord policies for multi-property discounts.
- Increase your deductible to lower premiums — $2,500 deductible can save 15-25% vs $500.
Frequently Asked Questions
Do I need landlord insurance?
Your regular homeowner's policy doesn't cover rental activity. If your property is rented out, you need a landlord/dwelling fire policy (DP-1, DP-2, or DP-3).
What's the difference between DP-1, DP-2, and DP-3?
DP-1 (basic): named perils, actual cash value. DP-2 (standard): broader named perils, replacement cost. DP-3 (premium): open perils, replacement cost — best coverage.
Does landlord insurance cover tenant damage?
Intentional tenant damage is typically not covered. Accidental damage from covered perils (fire, water) is covered. Security deposits and small claims court handle intentional damage.
How much does landlord insurance cost?
Typically 0.5-0.7% of property value annually, or 15-25% more than homeowner's insurance. A $350,000 property = $1,750-$2,450/year for standard coverage.
Can I deduct landlord insurance?
Yes — landlord insurance premiums are fully deductible as a rental property business expense on Schedule E.