HomeLandlord insurance
Landlord and Rental Property Insurance in Maryland
Whether you rent out one house, a condo or a small building, a landlord policy protects the property, the rent it earns and you, if a tenant or guest is hurt.
What a landlord policy covers
Rental homes are usually insured on a dwelling policy, most often the DP-3 form, which is designed for one- to four-family homes that the owner doesn't live in. A good landlord policy includes:
- The building, at its full rebuild cost.
- Other structures such as a detached garage or fence.
- Fair rental value, which replaces lost rent while the property can't be lived in after a covered loss.
- Premises liability, if someone is injured because of the condition of the property.
- Your property on site, such as appliances and furnishings you provide.
The details I check for landlords
Loss of rent
After a fire or a major water loss, a rental can be empty for months. Fair rental value coverage keeps the income coming while you rebuild, and it's easy to overlook when comparing prices.
Vacancy
Coverage can shrink when a property sits empty. Tell me about turnovers and renovations ahead of time so there's no surprise if something happens while a unit is vacant.
Liability limits
Tenants, their guests and contractors all come onto the property. I recommend strong liability limits and, for many landlords, an umbrella that extends over the rentals.
Tenant requirements
Requiring tenants to carry renters insurance protects them and reduces the chance that a tenant's loss turns into a claim against you.
Buildings and mixed-use property
Larger buildings, mixed-use properties with a commercial tenant, and properties owned through an LLC usually need commercial property and liability coverage instead of a dwelling policy. I write those too. See small business insurance.
Frequently asked questions
Can I use my homeowners policy on a house I rent out?
Generally, no. A homeowners policy is written for a home you live in. Once you rent it to tenants, you need a landlord policy, often called a dwelling fire or DP-3 policy. If a carrier doesn't know the home is rented, a claim could be denied.
Does my landlord policy cover my tenant's belongings?
No. Your policy covers the building and the things you own there, like appliances you provide. Tenants need their own renters insurance, and many landlords require it in the lease.
What happens to coverage if the property is vacant?
Many policies limit coverage once a property has been vacant for an extended period, commonly 60 days, especially for vandalism and water damage. If a unit will sit empty between tenants or during renovation, tell me so we can keep it properly covered.
Is a short-term rental like Airbnb covered?
Usually not by a standard landlord or homeowners policy. Short-term rentals need coverage written for that use, and some counties set their own requirements: a Baltimore County short-term rental license requires at least $1 million of liability coverage. Let me know how the property is rented and I'll match the policy to it.
Do I need an umbrella policy as a landlord?
It's worth considering. Tenants and their guests create liability exposure, and an umbrella can extend over your rental properties as well as your home and cars. Some carriers require the rental's liability to meet their minimums first.
Related coverage
Want a second opinion on your coverage?
Send me your current declarations page. I'll tell you honestly whether you can do better on price, coverage or both.