Landlord insurance
Summary of landlord insurance
Allstate® landlords and hosts insurance helps safeguard your rental property against sudden, accidental losses. Coverage includes damage from fire, wind, hail, and other covered perils, plus liability protection, medical protection, and fair rental income to offset lost rent if your unit becomes uninhabitable due to a covered loss.
What is landlord insurance?
Allstate® landlord insurance differs from homeowners insurance, because it helps protects you from unexpected rental property losses and the bills that come with them, including rent and even the cost of rebuilding your property if there’s damage from a natural disaster.1
What does landlord insurance cover?
Allstate landlords and hosts insurance typically covers a range of perils, including the following:
- Fire and smoke
- Windstorm or hail
- Falling objects
- Accidental or sudden water damage from appliances or burst pipes
Standard coverages include:
- Dwelling protection
Covers the rental property your tenants live in and other structures attached to it such as a garage, porch or deck. - Other structures protection
Helps cover stand-alone garages, sheds and other buildings that are separate from your rental property. - Liability coverage
Covers you if you're considered at-fault after an accident, damage or loss related to your property. - Medical Protection
Helps pay for reasonable and necessary medical expenses if a covered individual is injured in an accident on your rental property, regardless of who is at fault. - Fair rental income coverage
Helps pay the rental income you would otherwise lose if your rental becomes uninhabitable due to a covered loss and your tenants have to move out.
What’s not covered by landlord insurance?
Landlords and hosts insurance doesn’t typically cover:
- Breakdowns in the rental property
Most insurance for your property doesn’t cover basic maintenance repairs. For example, your coverage may not replace your water heater but might help pay for the damage to your floors. - Personal property
The items your tenants own, such as clothing, electronics and other personal possessions, aren’t covered under most landlord policies. You may want to suggest your tenants buy Allstate renters insurance to cover their belongings in case of a loss. - Floods, earthquakes and water backup
Typically, most landlord coverages exclude floods and earthquakes. You can buy flood insurance as a separate policy in addition to what landlord and hosts insurance covers.
How much does landlord insurance from Allstate cost?
The average cost of home insurance is $2,940 per year2, but landlord insurance can cost about 25% more than homeowners coverage because it helps cover risks related to tenants (and their guests) in your home3.
The cost of landlord insurance depends on several factors, including:
- Property location
- Rental property type
- Coverage selections
- Deductible amount
- Claims history
- Property age and condition
Rest easy knowing your rental is protected
Landlord insurance deductibles and coverage limits
When you have a covered loss, insurance for your property includes two key cost factors: your deductible and your coverage limits.
- Deductible
This is the amount you pay out of pocket before insurance helps cover the rest. For example, if a fire causes $5,000 in damage and you have a $1,000 deductible, you pay $1,000 and your insurance pays the remaining $4,000. Not all coverages have a deductible, but dwelling and other structures coverages always do. Your deductible amount appears in your policy declarations, and you typically choose it from several options — higher deductibles usually mean lower premiums. - Coverage limits
A coverage limit is the maximum amount Allstate will pay for a covered loss. Each coverage in your policy has its own limit, and you select those limits when you purchase the policy. It’s important to choose limits that match the value of your rental property and your potential rental income. These limits are listed in your policy declarations, and your Allstate agent can help you adjust them based on your needs.
How deductibles and coverage limits impact cost
The deductible and coverage limit you choose for landlord insurance can also affect your premium, for example:
- A landlord policy with a $2,500 deductible may cost less than a similar policy with a $1,000 deductible.
- A rental property with higher coverage limits for property damage or liability protection may have a higher premium than a policy with lower limits.
- Policies for older rental homes or properties in high-risk areas may cost more than new homes in lower-risk areas.
Landlord insurance may also qualify as a business expense for tax purposes.
Talk to an Allstate agent to decide what coverage works best for your rental property and budget.
Additional insurance policies to consider
While Allstate landlord and hosts insurance can help protect you in many situations, there are a few events that aren't typically covered. These additional policies can help safeguard against flood damage and expensive lawsuits. Learn more about:
- Flood insurance
This policy can cover the damage done to your rental properties by floods, which are the #1 natural disaster in the U.S.¹ - Personal umbrella insurance
Since owning multiple properties gives you more to lose in a major lawsuit, you may want the extra liability coverage personal umbrella insurance provides.
How to compare landlord insurance quotes
If you're gathering quotes from several companies, make sure you choose the same coverage types, limits and deductibles for an accurate comparison.
- Choose your coverage
Review coverage types included in a standard policy, as well as optional coverages you want to add. - Consider your limits
Think about your personal finances and needs when choosing your coverage limits. - Select your deductibles
Some landlord coverages come with a deductible, or the amount you pay toward a claim. For an accurate comparison, be sure to select the same deductible on each coverage for every quote you request.