The average landlord insurance cost is higher than the homeowners premium on the same house, because a rented dwelling is priced on tenant occupancy, on loss of rent while it is repaired, and on the landlord's liability to people who do not live there. The policy is usually a dwelling fire form rather than a homeowners form, and what it covers is narrower and more specific. The Insurance Information Institute's NAIC-based figure puts the average US homeowners premium at $1,411 for 2021, and the average renters premium at $170; both are national averages that no single household pays, and the rate pages on this site show what carriers actually file where you live.
What the landlord policy insures
The dwelling and other structures, the landlord's own property on site such as appliances, loss of rental income while a covered loss is repaired, and liability for injuries on the premises. The tenant's belongings are never covered; that is the tenant's renters policy. Vacancy beyond a stated period usually suspends coverage, so a rental between tenants needs attention.
Why it costs more than owner-occupied cover
Carriers price tenant occupancy for higher frequency of small claims, slower reporting of leaks and damage, and the liability of a public in the building. Loss of rent adds a coverage the homeowners policy does not carry. The form also matters: a basic dwelling fire form covers named perils only, a broader form covers more, and the price follows the form.
What moves it for your rental
Rebuild cost, roof age, the number of units, whether the tenant is required to carry renters insurance, the perils of the location and the deductible. The III reports that 5.5 percent of insured homes had a claim in 2022, so most policy years end with nothing paid out and the price is paid for the year something is.
How to compare
Quote the same dwelling limit, the same form, the same loss-of-rent months and the same liability limit across carriers. The rate pages on this site show what carriers file for dwelling and landlord cover in your state.
Questions people ask about average landlord insurance cost
What is the average landlord insurance cost compared with homeowners?
Higher on the same house, because of tenant occupancy, loss of rent and liability; this site publishes no benchmark and the filed rates for your state show the actual prices.
Does landlord insurance cover the tenant's belongings?
No. The tenant's renters policy does, and many landlords require one.
Is a landlord policy the same as a dwelling fire policy?
Usually the landlord policy is written on a dwelling fire form with loss of rent and liability added; the form decides which perils are covered.