Best Rental Property Insurance Companies

State Farm is our pick for the best rental property insurance

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Between 2016 and 2020, the average cost of a homeowners insurance claim due to damage from fire or lightning was over $77,340. With such large potential liabilities resulting from damage to rental properties, it’s critical for landlords to purchase appropriate rental property insurance coverage for their investment property—even if their tenants have their own renters’ insurance.

To help landlords find the right coverage, we looked at 25 top national insurance carriers and brokerage firms before settling on the five best. We assessed insurers based on their availability, coverage, pricing options, and transparency to build our list of the best rental property insurance companies.

Best Rental Property Insurance Companies of 2023

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Best Rental Property Insurance Companies
Best Rental Property Insurance Companies

Best Overall : State Farm

State Farm

State Farm

  • Direct underwriter: Yes
  • Bundling Discount: Yes
  • Financial Strength Rating: A++ (Excellent)
Why We Chose It

We chose State Farm as our best overall rental property insurance provider because the company offers coverage for landlords looking to protect their investment property up to its replacement cost. It also has a nationwide network of agents, responds quickly, and offers substantial discounts for landlords who bundle rental property insurance with home and auto policies.

Pros & Cons
  • Fast agent response time

  • Excellent financial rating

  • Coverage available nationwide

  • Discount for bundling home and auto

  • Agents currently can’t write insurance across state lines

  • Property owners are forced to insure property for replacement cost


State Farm was founded in 1922 and has an A++ rating for financial stability from AM Best. The largest property insurer in the U.S., State Farm is ranked #1 on the Insurance Information Institute's 2021 list of top ten direct premium writers of property/casualty insurance.

The company is headquartered in Illinois and offers landlord insurance nationwide through its network of agents. However, agents are only able to insure properties in the state where the agent’s office is located.

Landlord insurance from State Farm is priced based on property replacement cost, liability limits, and landlord deductibles. All other coverage is automatically included as a percentage of the dwelling coverage—such as other structures and loss of rental income. State Farm also covers vacancies if they result from a covered peril such as fire or some other form of physical damage to the property.

State Farm does not cover loss of rent due to things like local government prohibitions against using property for short-term rental. Other common perils not covered by the basic rental dwelling policy include damage caused by flooding and earthquakes (earthquake coverage is available as an optional endorsement and flood insurance can be purchased through the National Flood Insurance Program).

State Farm’s rental property insurance also doesn’t cover loss of your rental due to the inability to pay your mortgage as the result of a disability or death, although this can also be covered through separate insurance from the company.

Best Claims Process : Liberty Mutual

Liberty Mutual

Liberty Mutual

  • Direct underwriter: Yes
  • Bundling Discount: Yes
  • Financial Strength Rating: A (Excellent)
Why We Chose It

Liberty Mutual is our choice for best claims process because it has developed user-friendly mechanisms that make it easy for consumers to get their claims handled quickly. It offers fast response times and a 24/7 claims center.

Pros & Cons
  • Well-established company

  • 24-hour claims assistance

  • Insure property for replacement cost, purchase price, or another amount

  • Inflation protection must be added


Liberty Mutual was founded in 1912 and has a Financial Strength Rating of A (Excellent) with AM Best. Like State Farm, the company provides coverage through a nationwide network of captive agents who are extremely responsive. When we contacted Liberty Mutual for details about its coverage, we got a response within 24 hours from a regional representative who was very forthcoming with details.

While most rental property policies purchased from Liberty Mutual protect up to the replacement cost, the company also lets landlords insure properties for the purchase price or some other stated amount (unlike most competitors).

Rental property insurance from Liberty Mutual covers both the physical property and landlord liability for the premises. Additionally, landlords have the option of adding coverage for personal property, rental value, inflation protection, or umbrella coverage to their policies. As with other providers, flood insurance isn’t included unless landlords specifically add coverage, which often means getting a secondary policy through the National Flood Insurance Program.

Best Value : GEICO



  • Direct underwriter: No, uses partner carriers
  • Bundling Discount: Contact agent
  • Financial Strength Rating: A++ (Superior)
Why We Chose It

We named GEICO our best value because, of all the rental property insurance companies we researched, GEICO was the only one that had no required minimum cost. Customers can purchase policies with no coverage or premium limits. The company only provides coverage based on the replacement cost of a property.

Pros & Cons
  • No minimum cost

  • Policies include nominal personal property coverage

  • Insurance covers loss of use

  • Coverage must be based on replacement cost

  • GEICO outsources rental property insurance


GEICO was founded in 1936 in Fort Worth, Texas. While the company has an A++ (Superior) rating from AM Best, this doesn’t directly affect rental property insurance policyholders because GEICO doesn’t offer landlord coverage itself. Instead, the company serves as an agency to help place landlord coverage with a network of partner carriers based on individual landlord needs.

Through its network, GEICO offers rental property insurance in most states, depending on the location of the property. Every policy is written based on the replacement cost of the home and its location. Policies include both the dwelling and any other structures on the property. (Policies may be subject to minimum and maximum coverage amounts for personal property or liability.)

Policies also cover loss of use—the value of the loss of rent due to a covered peril such as fire. Vacancies during tenant turnover are not covered, and standard exclusions are earthquake, natural flooding, and sewer line backup.

Best for Military Servicemembers and Their Families : USAA



  • Direct underwriter: Yes
  • Bundling Discount: Yes
  • Financial Strength Rating: A++ (Superior)
Why We Chose It

Our choice for best option for military service members and their families is USAA because, as a member-owned company, USAA’s offerings are uniquely designed to meet the specific needs of active members of the U.S. armed forces, reservists, and veterans. For example, many of USAA’s insurance products include endorsements to cover premiums for deployed service members or those injured while on active duty.

Pros & Cons
  • Member-owned company

  • Coverage designed to meet the needs of service members, reservists, veterans, and their families

  • Insure up to 10 properties with one policy

  • Must be a member to get coverage

  • Must qualify for membership before applying

  • Poor response time


USAA was founded in 1922 in San Antonio, Texas, by Army officers who were having trouble finding carriers to insure their cars. Since then, the company has grown into one of the largest member-owned financial services companies in the world. It now offers banking and investment services in addition to insurance and annuities to service members, veterans, and their families. According to the Insurance Information Institute, USAA is among the top 10 writers of homeowners insurance.

While USAA provides rental property insurance to landlords who qualify for membership, very few details about its coverage are publicly available. We were able to confirm that landlords can insure up to 10 rentals with a single policy and get coverage for both the property itself, lost rental income for covered events, and personal liability.

Landlords can also get custom home-sharing coverage if they only want to rent out a part of their primary residence. Those who want more information about rental property coverage from USAA will need to apply for membership and submit details about their property in order to get a custom quote.

Best Brokerage Option : Trusted Choice

Trusted Choice

Trusted Choice

  • Direct underwriter: No, uses independent agents/partner carriers
  • Bundling Discount: Yes
  • Financial Strength Rating: n/a
Why We Chose It

Trusted Choice is our best brokerage option because the company has a nationwide network of independent agents that can help landlords find policies from multiple carriers. Landlords can get the exact coverage to fit specific needs and budgets. This works in contrast to most of the other companies on our list that directly underwrite and service policies.

With Trusted Choice, landlords can get quotes from more than 65 top insurance carriers from around the country with just a single application.

Pros & Cons
  • Nationwide network of carriers to meet individual landlord needs

  • Independent agents who can quote multiple carriers to get the best deal

  • Safety, bundling, group, and loyalty discounts available

  • Military discounts also available

  • Doesn’t provide coverage directly


Trusted Choice is a national nonprofit insurance agency that was founded in 2001. The company is funded by its partner-carriers and has the sole mission of making information available about different types of coverage, their benefits, and costs. 

Rental property coverage, cost, and claims processes vary based on which provider you choose, but policies typically protect the dwelling itself and landlord liability in the case of accidents or injuries, as well as umbrella coverage.

Income protection is also available as an add-on. With Trusted Choice, landlords can also add other coverage like workers’ compensation, inland marine, and flood insurance, depending on their specific needs.

Final Verdict

State Farm secured our top spot for best overall rental property insurance company for a number of important reasons. It offers landlords a coverage amount for the full cost of replacing a property. Its agent network covers the country so information and assistance is easily accessible. Notably, landlords can take advantage of savings offered by bundling discounts. State Farm's response time and financial stability get top marks.

Compare the Best Rental Property Insurance Companies

Category  Company Site
 Best Overall State Farm
 Best Claims Process Liberty Mutual
 Best Value GEICO
 Best for Service Members & Families USAA
 Best Brokerage Option Trusted Choice

Frequently Asked Questions

What Is Rental Property Insurance?

Rental property insurance, or landlord insurance, is insurance that protects a property. It typically covers up to the replacement cost, but sometimes up to the purchase price or some other predetermined value. Rental property insurance also usually protects the critical systems in a house—electrical, mechanical, sewer—if they become damaged due to an accident. Notably, it protects landlords against tenants' loss of use of property due to a covered event.

What Does Rental Property Insurance Typically Include?

That can vary by the type of property being insured, its location, and claims history. However, most policies cover the property itself, personal injury to tenants or their guests deemed the landlord’s fault, and personal property to a small degree. No matter how much coverage landlords choose, insurance companies will not pay landlords more than the value of the damage done to a property in a covered event.

What Does Rental Property Insurance Typically Exclude?

Some items that aren’t included in a rental property insurance policy are title insurance and loss due to malfeasance or negligence (e.g., loss from a fire due to an issue that a landlord was aware of and failed to fix). It also doesn’t cover the holding costs of a property that’s sitting vacant, except in cases where a covered event occurs (e.g., a tree falls on the house). Most policies also don’t include coverage for damages resulting from natural disasters (such as floods or hurricanes) unless landlords specifically opt for it (at an added cost).

What Are the Expected Costs of Rental Property Insurance?

Typically, landlords can expect their annual rental property insurance to cost about 25% more than a traditional homeowner's policy. Specifically, costs depend on the property being insured (house, condo, multi-family, long-term, or Airbnb) and location. Other cost factors include whether a property is in a flood zone, whether the landlord has filed claims recently, and the insurer’s desire to insure a property in a particular area. A landlord’s credit rating might also affect cost.

Is Paying for Rental Property Insurance Worth It?

Yes, because without it, you could be on the hook for significant liabilities, ranging into the hundreds of thousands of dollars if something happens. For instance, you may have to pay to repair or rebuild the property. If you have leased the property to tenants, you may be responsible for paying for their housing elsewhere while you make repairs. If one of your tenants gets hurt on the property and it’s your fault, you can be held responsible for medical bills and lost wages.

How to File a Claim

The process for filing a rental property insurance claim can be different with each insurer. In many cases, the process can depend on whether your carrier has an adjuster in your area or if it outsources its claims to contractors. Typically, when something happens and you need to file a landlord insurance claim, the process goes something like this:

  1. Mitigate the damage: If something happens that causes damage to your house, you need to take steps to stop any further damage. For example, if water is flooding into the house, do what you can to stop it so no additional damage occurs.
  2. Notify the insurer: This may require a phone call or completing an online form; do it as soon as possible once you’ve decided to file a claim.
  3. Document the damage: Your insurer may require you to provide pictures of the damage as well as the area surrounding the property before any clean-up so they can assess the cause of the damage.

Some landlord insurance companies have mobile apps that you can use to file a claim or submit pictures, while others require physical paperwork to document a claim. When you buy coverage, your specific claims process will be detailed in your policy documents. It’s important to read this information carefully so you know what to do if disaster strikes.


We looked for companies that provide coverage in many areas, if not nationally. We focused primarily on large, reputable companies with sound financials, and gave preference to companies that make clear what is included in their coverage (so landlords know exactly what to expect from their insurance).

We also reached out to both agents and carriers and gauged their response time and willingness to share details about the policies they offer. In total, we looked at over two dozen top insurance carriers and brokerage firms to come up with our list of the five best rental property insurance companies.

Woman looking at real estate agent while man signing documents at rental property

Maskot / Getty Images

Article Sources
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