Best Landlord Insurance Companies

State Farm is a top pick for inclusions and financial strength

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Landlord insurance is a type of property insurance meant to help property owners protect their rental assets. Whereas traditional homeowners insurance only covers owner-occupied properties, landlord insurance is specifically set up to protect the buildings and land that landlords own and lease against various losses. While landlord insurance policies can vary, the majority provide coverage for property damage, lost rental income when a property becomes uninhabitable, and general liability.

The best landlord insurance companies will offer competitive pricing, strong financial ratings, levels of standard coverage and ability to tailor add-on coverage, and easy-to-reach customer service agents. These companies will also offer policy discounts for bundling or going claim-free for a period of time and make it easy to get quotes as well as policy details. Read on to find the best landlord insurance companies for your property insurance needs.

Best Landlord Insurance Companies of 2023

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Best Overall : State Farm


State Farm

 State Farm

  • Policy Types: Landlord, home, auto, and more
  • Coverage Limit: Contact agent 
  • Price: Contact agent
Why We Chose It

State Farm is our choice for best overall landlord insurance company because of the numerous inclusions (identity restoration, business property, and ordinance of law) in its landlord insurance policies, as well as its ratings for financial strength, which are crucial for landlords to consider.

Pros & Cons
Pros
  • Excellent ratings for financial strength

  • Customize your policy

  • Add additional coverage for earthquakes

Cons
  • Coverage add-ons can cause your premiums to rise

Overview

State Farm has a strong reputation for financial strength, including an A++ rating from AM Best and an S&P Global Rating of AA. Founded in 1922, State Farm now insures more cars and homes than any other insurance provider in the United States. In addition, State Farm was ranked above average for customer satisfaction in J.D. Power’s 2022 U.S. Home Insurance Study, which compared companies based on customer satisfaction, the claims process, billing, and several other factors.

Landlord policies from State Farm provide coverage for the building you own, whether it’s a single-family home, a multi-family unit, or an apartment building. You’ll also have coverage for all other structures attached to your property (e.g., fences, storage buildings, garages, etc.) as well as for general liability, loss of income, equipment breakdown, heating and air conditioning loss, and more.

State Farm lets you customize your coverage with a few different add-ons, including data compromise and identity restoration. These can help you get your business back on track if a data breach occurs or you're a victim of identity theft. Ordinance or law coverage is automatically included for a minimum amount and “covers the loss of value and increased cost due to the enforcement of municipal laws or ordinances regulating the construction or repair of damaged buildings caused by an insured loss,” notes State Farm.

Coverage for landlords from State Farm is available nationwide. However, since each policy is different, you’ll need to get a quote from State Farm to find out about policy limits, exclusions, and how to begin the underwriting process. Note that you do need a copy of a lease to prove a tenant occupies your rental.

Runner-Up, Best Overall : Liberty Mutual


Liberty Mutual

Liberty Mutual

  • Policy Types: Home, auto, landlord, and more
  • Coverage Limit: Contact agent
  • Price: Contact agent
Why We Chose It

We chose Liberty Mutual as the runner-up in the best overall landlord insurance company category because, while it doesn't automatically include extras as State Farm does, landlords have the option to tailor a landlord policy to suit their needs.

Pros & Cons
Pros
  • Claim-free discounts

  • Special add-on protections can be purchased

Cons
  • Below average in J.D. Power’s 2022 U.S. Home Insurance Study

Overview

Liberty Mutual is a household name for home and auto insurance, earning high marks for financial strength, including an A rating from both AM Best and Standard & Poor’s. However, in the 2022 J.D. Power U.S. Home Insurance Study, Liberty Mutual ranked below average for overall customer satisfaction. The company has been around for more than 100 years and is the sixth-largest property and casualty insurer in the world, with more than 45,000 employees globally.

Landlord insurance from Liberty Mutual comes with standard coverage for physical structures and liability. Coverage also includes wind & hail as well as fair rental value. You have the option to customize your coverage with an add-on for inflation protection. Additional add-ons may be available when you speak to an agent.

Liberty Mutual also comes with 24-hour claims assistance, and you may be able to qualify for discounts when you bundle your own homeowner's insurance policy with a landlord insurance policy or when you are claims free for five years or more. You can receive a discount if you get a quote for landlord insurance from Liberty Mutual before your existing policy with another provider expires.

Like other landlord insurance companies, Liberty Mutual tailors its policies to individuals and individual properties. As a result, you must speak with an agent and provide personal information and property details to get a quote.

Best for Bundling Policies : Allstate


Allstate

Allstate

  • Policy Types: Homeowners, auto, landlord, and more
  • Coverage Limit: Contact agent
  • Price: Contact agent
Why We Chose It

Allstate is our top pick for bundling policies because it has a strong reputation for quality, and it offers multi-policy discounts for customers who have more than one rental property or other types of insurance policies with them.

Pros & Cons
Pros
  • Get a discount for bundling policies

  • Financial strength and reliability

  • Tailor your coverage with special add-ons

Cons
  • You must work with an agent to get a quote

Overview

Founded in 1931, Allstate Insurance currently backs more than 113 million proprietary policies worldwide. One factor that sets Allstate apart is its use of local agents who work directly with customers for a more personal insurance experience than some other companies offer. In terms of financial strength, Allstate boasts an A+ rating with AM Best.

Allstate landlord policies include coverage for dwellings, other structures on the property, vandalism, burglary, fair rental income, building codes, and liability. In addition, you’ll get premises medical protection that can help cover medical bills if someone is injured on your property. Flood insurance and umbrella coverage can be purchased by landlords who want more protection against financial losses.

Allstate doesn’t offer quotes for landlord insurance online, but you can speak with an agent who can provide you with a free quote if you supply them with the property address and your personal details. Allstate offers landlord insurance discounts for multiple policies if you purchase auto insurance or your own homeowner's insurance policy from Allstate.

Best for Multi-Unit Properties : Farmers


Farmers

Farmers

  • Policy Types: Homeowners, landlord, multi-unit, and more
  • Coverage Limit: Contact agent
  • Price: Contact agent
Why We Chose It

We chose Farmers as the best landlord insurance company for multi-unit properties because of its willingness to insure rental properties with multiple units. Many other providers focus on single-family homes.

Pros & Cons
Pros
  • Screen tenants easily with the SmartMove™ Solution

  • Personalize your coverage

  • Multiple-unit coverage

What We Don't Like
  • No standard coverage for other structures

Overview

Founded in 1928 in a tiny, one-room office in Los Angeles, California, Farmers Insurance now offers personalized coverage and service for its landlord policies and other insurance options. This company has an A rating for financial strength from AM Best.

Farmers' landlord policies provide standard coverage for property damage, for instance, if your rental property is damaged by wind or a burst pipe that leads to extensive water damage. You’ll also get standard liability coverage, which can kick in if someone is injured on your property and needs medical care. Policies can cover multi-unit buildings such as triplexes and fourplexes, making it convenient for landlords to get broad coverage in one spot.

Landlords can purchase optional coverage for potential claims such as for loss of rent when a property becomes uninhabitable, personal property, personal injury, and coverage for other structures that aren’t physically connected to the rental property, such as garages or sheds.

As a side note, Farmers also offers a tenant screening tool known as the SmartMove™ Solution, making it easier to screen new tenants through TransUnion. Plus, Farmers offers access to claims professionals 24 hours a day, and they’ll even send a Catastrophe Response Team to process claims on-site in some cases.

Best for Commercial Coverage : American Family Insurance


American Family

American Family

  • Policy Types: Homeowners, auto, and commercial landlord
  • Coverage Limit: Contact agent 
  • Price: Contact agent
Why We Chose It

We chose American Family Insurance as best for commercial insurance because it offers coverage specifically for commercial landlords, and you can easily tailor these policies to meet your business needs. Additionally, American Family's website gives you several tools and resources that are particularly useful to landlords.

Pros & Cons
Pros
  • Tailor your policy with select add-ons

  • Add flood insurance or an umbrella insurance policy

Cons
  • May need to be a customer to get landlord insurance

  • Outbuilding insurance is additional

Overview

American Family Insurance boasts an A rating for financial strength from AM Best. The Madison, Wisconsin-based provider has been around since the 1920s, although its name and the type of insurance it sells have changed over the years. Today, American Family Insurance is known for its homeowner's insurance, auto insurance, and commercial landlord insurance policies.

American Family Insurance offers landlord insurance that can be customized to meet your needs. With these policies, you’ll automatically get coverage for the rental structure you own and for general liability. Additional coverage can be purchased in the form of flood insurance and coverage for outbuildings like sheds, fences, and garages. You can also bundle your landlord insurance from American Family Insurance with a commercial umbrella policy covering you for limits beyond what your landlord insurance policy offers.

You need to speak with an American Family agent and provide an array of personal and property information to get a quote, which can make it difficult to shop around.

Best for Multiple Properties : Foremost


Foremost Insurance Group

 Foremost Insurance Group

  • Policy Types: Landlord, landlord bundled policies, vacation home, and more
  • Coverage Limit: Contact agent or online quote
  • Price: Contact agent or online quote
Why We Chose It

Foremost builds one custom policy for you whether you have a single rental property or 10. This makes it easy for landlords who buy, sell, and manage properties to always have the right protection. That's why it's our choice for the best landlord insurance company for multiple properties.

Pros & Cons
Pros
  • Choose the types of coverage you want

  • Bundle all rental property policies into a single landlord policy

  • Solid ratings for financial strength

Cons
  • Full replacement cost coverage can cause your premium to rise

  • Higher premiums for add-ons

Overview

While Foremost Insurance Group may not be a household name, this company has excellent financial strength ratings, including an A rating from AM Best. Foremost is part of Farmers Insurance Group of Companies, the nation’s ninth-largest personal property and casualty insurance company and the fifth-largest homeowner's insurance company.

Landlord insurance from Foremost comes with comprehensive property coverage, including named peril coverage for fire, explosions, windstorms, hail damage, and more. Additionally, an optional replacement cost coverage can replace the full value of your property without deductions for depreciation. Uniquely, Foremost will bundle all rental properties into a single landlord policy for convenience and cost-effectiveness.

Other options include agreed loss settlement coverage, which provides you with a reimbursement if a covered peril destroys your property. Policies automatically come with liability coverage that can protect you financially if someone is injured or their property is damaged on your premises.

Additionally, Foremost can protect for:

  • Loss of rents
  • Liability limits
  • Personal injury
  • Other structure
  • Repair cost
  • Water damage from sewers and drains

Being able to protect for all of this across different properties gives Foremost an edge for landlords who buy, sell, and hold multiple properties, as it helps to prevent any gaps in coverage.

Best for Single Family Homes : Travelers


Travelers Insurance

Travelers Insurance

  • Policy Types: Landlord, home, auto, and more
  • Coverage Limit: Contact agent
  • Price: Contact agent
Why We Chose It

Travelers Insurance offers traditional landlord insurance policies that work well for single-family homes and can be tailored to fit what you need and not what you don't. It's our pick for best landlord insurance company for single family homes.

Pros & Cons
Pros
  • Coverage for your commercial property and outbuildings

  • Tailor your policy to your needs

  • Qualify for special discounts

Cons
  • Low score in J.D. Power’s 2022 U.S. Home Insurance Study

Overview

Travelers has an A++ rating for financial strength from AM Best, and the company has been around since 1864. However, in the 2022 J.D. Power U.S. Home Insurance Study, Travelers ranked below average for overall customer satisfaction.

While the company started as an accident insurance company, Travelers now offers coverage for automobiles, owner-occupied homes, and more, including specialty coverage like landlords insurance, renter’s insurance, and boat and yacht insurance.

Travelers provides landlord insurance for single-family homes and multi-family units, which helps you protect the building you own, plus any additional outbuildings. You can get coverage for damage and theft and premises liability, as well as for medical payments and also special insurance for loss of use. Travelers lets you customize your policy to fit your specific insurance needs for your single-family rental.

General liability insurance is available, as well, and you can add an umbrella insurance policy to protect yourself even more.

Because the details of landlord insurance policies vary widely, you’ll need to reach out to a Travelers agent to get a commercial landlord property quote. Fortunately, Travelers offers a wide range of discounts for customers who bundle more than one policy or go without any claims for a specified time period.

Final Verdict

Overall, we recommend that you check out State Farm. The company is an industry leader, plus it offers customizations and add-on coverage for landlord insurance policies. However, all of the best landlord insurance companies presented offer different types of landlord insurance, have lots of industry experience, and have received top financial strength ratings. You'll find various coverage limits, competitive pricing, and coverage for additional structures on your property.

Compare the Best Landlord Insurance Companies

Company Policies Offered Structural Coverage Coverage Limits Pricing
Best Overall
State Farm
Landlord, home, auto, and more Yes Contact agent Contact agent 
Runner-Up, Best Overall
Liberty Mutual
Landlord, home, auto, and more Yes Contact agent Contact agent
Best for Bundling Policies
Allstate
Homeowners, auto, landlord, and more Yes Contact agent Contact agent
Best for Multi-Unit Properties
Farmers
Homeowners, landlord, multi-unit, and more Need to purchase additional coverage Contact agent  Contact agent 
Best for Commercial Coverage
American Family Insurance
Homeowners, auto, and commercial landlord Need to purchase additional coverage Contact agent Contact agent 
Best for Multiple Properties
Foremost
Landlord, landlord bundled policies, vacation home, and more Yes Contact agent or online quote Contact agent or online quote
Best for Single Family Homes
Travelers
Landlord, home, auto, and more Yes Contact agent Contact agent 

Frequently Asked Questions

  • How can I save money on my landlord insurance?

    First, get and compare prices from different landlord insurance companies for the specific insurance that you need to find the most competitive quote. Also, ask about discounts that various companies offer, such as on policy bundling or savings if you haven't filed claims recently. You may also be able to reduce costs by ensuring that your rental property has safety devices (such as alarms, security cameras, and improved lighting).

  • What is the difference between landlord insurance and home insurance?

    Landlord insurance provides coverage for property owners against loss while renting their property. For example, that could be property damage or loss of income if property damage results in the inability to rent the property. Broadly speaking, home insurance provides coverage for your primary residence, the personal belongings within it, and liability.

  • Is landlord insurance tax deductible?

    Yes, it is. The IRS allows you to deduct the entire premium amount for insurance on your rental property because it considers it a normal business expense for those who rent out real estate.

  • What should I look for in landlord insurance?

    Look for insurance that protects you in case of damage to the property, which might occur as a result of a natural disaster, malfunctioning water or electrical systems, or tenant actions. You'll also want protection against loss of income should the property become uninhabitable (e.g., due to damage or insect infestation). The third main area of protection is liability coverage for legal or medical costs that might arise if tenants or visitors to your property suffer injuries related to the property's maintenance. Finally, ask about additional coverage a company might offer that fits some specific needs, such as flood insurance or emergency coverage.

Methodology

We looked at more than 15 landlord insurance companies that offer policies nationwide and ranked them based on their financial strength, giving preference to companies with exceptional ratings from AM Best or Standard & Poor’s. We compared companies based on the standard coverage they include in their landlord policies, as well as the customer’s ability to tailor their insurance with special add-on coverage.

Finally, we gave preference to insurers that let you save money on landlord insurance when you bundle more than one policy with them or when you go claim-free for a specific timeframe.

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Getty Images / sakchai-vongsasiripat

Article Sources
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