Rental Property Insurance FAQ

  • What is rental property insurance and what does it cover?

    Rental property insurance protects the physical structure of a tenant-occupied property against covered risks such as fire, wind, hail, lightning, and vandalism. Policies may also include landlord liability coverage and loss of rental income.

  • Is rental property insurance the same as homeowners insurance?

    No. Homeowners insurance is for owner-occupied homes. Rental property insurance is designed for properties occupied by tenants and carries different coverage requirements.

  • What does rental property insurance not cover?

    Rental property insurance typically does not cover tenants’ personal belongings, routine maintenance, wear and tear, or certain water, flood, or earthquake losses unless added by endorsement.

  • Do I need rental property insurance if I own the property outright?

    Yes. Even without a mortgage, rental property insurance helps protect you from property damage, liability claims, and lost rental income.

  • How much coverage do I need for a rental property?

    Coverage is usually based on the cost to rebuild the structure, not the property’s market value. An insurance professional can help determine an appropriate limit.

  • Does rental property insurance cover detached structures?

    Some policies include limited coverage for detached structures like sheds or garages. Coverage limits vary and may require additional protection.

  • Is water damage covered by rental property insurance?

    Some sudden and accidental water damage may be covered. Flooding, sewer backups, and long-term leaks are typically excluded unless optional coverage is added.

  • Can I change my coverage amount?

    Yes. Coverage limits can usually be adjusted at renewal or during the policy term, subject to carrier approval.

  • What’s the difference between actual cash value and replacement cost?

    Actual cash value accounts for depreciation, while replacement cost pays to repair or replace without depreciation.

  • How do I file a claim on a rental property policy?

    Contact your insurance carrier or agent as soon as possible, document the damage, and provide any requested information to begin the claims process.