In this article, we have chosen the 10 best landlord insurance companies for investors in the US residential real estate market.
The Importance of Rental Property Insurance for Investors
A major part of running a profitable and successful rental property business boils down to protecting your investment and yourself in the best possible way. There are dozens of things that can go wrong with your property, from sustaining major damage during a natural disaster, all the way to a tenant or guest getting injured on site. Each of these unfortunate occasions can end up costing you thousands of dollars and significantly impacting your cash flow and return on investment.
Thus, it’s crucial to select the best landlord insurance policy and provider to have your rental and yourself on the safe side. But with hundreds of insurance companies in the market, it’s hard to choose the best one for your real estate investment.
To help out beginner landlords, we did extensive research on multiple companies providing rental property insurance. In our selection process, we looked at a myriad of factors, described in detail below, to rank the 10 best options for different types of investors and different kinds of properties.
Here are the top 10 insurance companies for landlords in the US market:
- Allstate: Best for Comprehensive Coverage
- Farmers Insurance: Best for Optional Coverage
- Liberty Mutual: Best for Discounts and Savings
- American Family Insurance: Best for Bundling
- COUNTRY Financial: Best for Claim Settlement Options
- Steadily: Best for Short Term and Long Term Rentals
- Travelers: Best for Different Rental Properties
- State Farm: Best for Rental Apartments
- Foremost: Best for Multiple Rental Properties
- USAA: Best for Landlords in the Military
Criteria for Selecting the Best Landlord Insurance Companies
We’ve used the following criteria to select the best companies for landlord insurance in the US market
Choosing the best rental insurance companies is a task that should not be taken lightly. This means that there are a number of factors and criteria that need to be taken into consideration throughout the process.
When researching and selecting the top options for insurance for property to be rented out, we used the following indicators:
- Company reputation and financial stability: We included national and international insurance providers that have a long history, strong financial performance over the years, and solid online and offline reputation.
- Included coverage: We chose companies that provide comprehensive property and liability coverage in their standard landlord policy.
- Optional coverage: We selected insurance agencies that offer a wide range of additional coverages so that investors can customize the exact protection they requie.
- Additional options and features: We looked for companies that have flexible policies to allow real estate investors to choose the best coverage for their needs and that have bundling options to provide discounts and savings.
- Property types covered: We considered what types of properties different companies insure (single family homes, condos, apartments, townhouses, multifamily homes, etc.) and whether they cover both short term and long term rentals.
- Market coverage: We gave preference to companies whose services are available throughout the US housing market, including all states.
- Pricing: We took into account how the landlord insurance cost is determined by each company to provide affordable, competitive rates to rental property owners.
- Availability and customer service: We selected companies that provide superior customer support and that are always available when needed by landlords.
- Customer reviews and testimonials: We took into account the ratings of insurance companies on reputable websites.
So, without further ado, let’s take a look at the best landlord insurance companies in the USA for different categories and what gives them this status:
#1: Allstate: Best for Comprehensive Coverage
Allstate is one of the biggest names in the insurance industry nationwide. Established in 1931, the company has a long history of providing different types of policies across the country. We’ve ranked Allstate as the best insurance for homes rented out for all-inclusive coverage.
Policy Coverage
The standard Allstate landlord insurance policy provides wide, comprehensive coverage, which makes it the best company in this category.
Allstate covers:
- Dwelling protection including the rental property and other structures attached to them such as garages, porches, and decks
- Detached structures protection like garages, sheds, and other separate buildings
- Liability coverage if a landlord gets sued after a damage, accident, or loss related to the rental
- Fair rental income coverage in case the property becomes uninhabitable due to covered loss
- Premises medical protection for guests injured in accidents on the property
- Fire and smoke
- Windstorm and hail
- Water damage from plumbing, water heater, and pipe bursts
- Falling objects
Optional Coverage
In addition, Allstate offers a number of additional coverages that include:
- Vandalism
- Burglary
- Rental property under construction coverage
- Building code
- Flood insurance (to be purchased separately)
- Personal umbrella insurance (to be purchased separately)
Additional Options and Features
Allstate gives investors to choose the exact coverage they need through multiple options. They can also select their coverage limits in line with their needs and budget as well as the deductibles.
Property Types
Allstate doesn’t specify the types of properties which it insures. The company covers the entire US market.
Cost
To get a quote, landlords need to connect with an Allstate insurance agent. The price depends on the coverage, the limits, and the deductibles. Owners can lower their monthly premium through a multi-policy discount obtained when bundling different policies together.
Customer Reviews and Testimonials
In terms of customer testimonials, there are thousands of online reviews of Allstate. The overall ratings on various review websites are rather low.
To get a quote from Allstate, landlords can click here to find and contact a local agent in their market.
#2: Farmers Insurance: Best for Optional Coverage
Number two on our list of the top insurance companies for landlords is Farmers Insurance. Since its founding in 1927, the provider has built a solid reputation for itself. Our research shows that this is the best insurance for rental property for additional coverages.
Policy Coverage
Typically, Farmers Insurance protects against:
- Property damage
- Damaged inventory
- Injuries
- Lawsuits
- Disgruntled employees
- Storm damages
- Pipe bursts
Optional Coverage
Farmers offers more optional coverages to be included in landlord insurance than most other companies in the US market. Many of these coverages come along with business insurance policies and include but are not limited to:
- Other structures such as garages, sheds, swimming pools, and driveways
- Landlord personal belongings stored on the property
- Loss of income
- Personal injury coverage if suited for wrongful eviction
- Employee dishonesty
- Theft
- Counterfeit currency
- Forgeries
- Data breaches
Additional Options and Features
Farmers gives investors the opportunity to personalize their coverage to get the precise insurance they want and they need. Furthermore, the company partners with TransUnion to offer SmartMove, which is a quick and reliable tenant screening solution. Selecting good tenants is a proven way to limit claims, keep your property in top shape, and reduce your landlord insurance price in the future.
Property Types
Farmers works with all types of residential real estate investments including single family homes, small multifamily homes, and multi-unit complexes. As a top insurance provider, Farmers services are available in all 50 states plus DC.
Cost
Farmers Insurance does not provide estimates on the price that landlords will need to pay as it depends on multiple factors. But they give investors access to a tenant screening mechanism that helps them lower the price in the long term.
Customer Reviews and Testimonials
Farmers Insurance customer testimonials are abundant, with thousands of online reviews on trustworthy websites. The overall ratings provided by current and past clients are average.
To get a quote from Farmers Insurance, landlords can click here to find and contact a local agent in their market.
#3: Liberty Mutual: Best for Discounts and Savings
Liberty Mutual is one of the oldest insurance companies in the US, having been started in 1912. Among the many different types of insurance that they supply, they also have one of the top coverages for real estate investing purposes. Because of the multiple discounts available to landlords, we’ve ranked them as the leader among the best landlord insurance companies for savings.
Policy Coverage
The standard home rental insurance provided by Liberty Mutual covers:
- Dwelling including the property itself
- Damage that occurs on the property
- Premises liability coverage including injury that happens in the home to both tenants and workers
- Loss of rent at fair rental value
- Fire
- Wind and hail
Optional Coverage
Additionally, landlords can opt in for:
- Water backup coverage
- Inflation protection for contracting repair costs that rise with inflation
Additional Options and Features
Liberty Mutual offers a number of landlord insurance discounts which makes them the best insurance for rental properties for opportunities to save.
The available discounts are:
- Multi policy discount when insuring a home and a rental property
- Claims-free history when not having filed claims with a previous insurer for five or more years
- Paperless discount when receiving all documents electronically
Property Types
Liberty Mutual does not list the types of rental properties that it insures. The provider operates in all 50 states and the District of Columbia.
Cost
The Liberty Mutual landlord insurance is customizable so that investors pay only for what they need. The price is determined by the location, the surrounding environment, the type of weather, the age of the building and the systems, and prior claims, among others. Rental property investors can lower the cost of the premium by increasing the deductibles.
Customer Reviews and Testimonials
Liberty Mutual has a strong online presence with thousands of reviews on multiple major websites. The overall ratings, however, are generally low.
To get a quote from Liberty Mutual, landlords can call 844-237-5603 to contact a local agent in their market.
#4: American Family Insurance: Best for Bundling
American Family Insurance is another best company for landlord insurance. Started in 1927, the company protects investors and their properties in 19 states. Our research shows that this is a top choice for landlords looking for options to bundle their rental house insurance with other policies.
Policy Coverage
American Family provides standard coverage similar to other top companies, including:
- Building damage
- Auxiliary structure
- Primary general liability
- Medical expense coverage
- Landlord personal property on site
Optional Coverage
Furthermore, real estate investors can add the following coverages for extra protection:
- Personal umbrella insurance
- Commercial umbrella insurance
- Flood insurance
Additional Options and Features
American Family provides landlords with the opportunity to bundle their rental properties insurance (a type of business owners policy) with commercial liability umbrella policy, business auto insurance (for vehicles needed for the rental business), and life insurance (to protect the landlord’s family by covering projected taxes and estate administration costs). These advanced options make American Family the top company for bundles.
Property Types
American Family Insurance does not clarify what types of residential rental properties they work with. In terms of market coverage, their services are present in 19 states, which is more limited than the availability provided by other best companies.
Cost
The cost of the American Family landlord insurance can vary widely, based on multiple factors. It’s generally higher than the price of home insurance.
Customer Reviews and Testimonials
American Family Insurance customer testimonials are numerous, yet very different, ranging from extremely poor to superior experiences.
To get a quote from American Family Insurance, landlords can click here to find and contact a local agent in their market.
#5: COUNTRY Financial: Best for Claim Settlement Options
COUNTRY Financial is another large insurance company that provides coverage for investment properties. Founded in 1925, the company works in 19 states across the US market. Our investigation places COUNTRY Financial as the best landlord insurance company for claim settlement options.
Policy Coverage
The basic coverage provided by COUNTRY Financial includes:
- Building and permanent features including walls, floors, and cabinets
- Other structures such as garages and storage sheds
- Landlord personal property
- Liability and medical payments
- Lost income
- Fire and lightning
- Theft
- Vandalism
- Windstorm and hail
- Freezing of plumbing
Optional Coverage
The premium coverage that COUNTRY Financial offers comprises:
- Countertop burns
- Paint spillage
- Power surge damage to appliances
- Earthquake damage
- Damage to unoccupied seasonal dwellings
- Sump pump failure and backup of sewer
- Mine subsidence
- Loss assessments from an HOA
Additional Options and Features
With COUNTRY Financial, real estate investors can choose between actual cash value and replacement cost claim settlement options. This makes them the best company in this category.
Property Types
While COUNTRY Financial doesn’t list the type of residentials that it insures, the company works with both full-time rentals and vacation rentals. Landlord insurance is available in 19 states.
Cost
The landlord insurance quote provided by COUNTRY Financial depends on many factors, so it’s not possible to provide an estimated average value.
Customer Reviews and Testimonials
Investment property owners can find hundreds of COUNTRY Financial customer testimonials. The overall ratings of the company on review websites are both good and bad.
To get a quote from COUNTRY Financial, landlords can click here to find and contact a local agent in their market.
#6: Steadily: Best for Short Term and Long Term Rentals
Steadily is among the best landlord insurance companies for many different reasons. Despite being one of the newest companies on our list (launched in 2020), Steadily offers comprehensive coverage to both Airbnb rentals and traditional rentals of different types. What makes Steadily stand out from the competition is that it was created as a rental property insurance company rather than a generic insurance agency.
Policy Coverage
Steadily provides comprehensive insurance for rental properties comprising:
- Fire
- Water
- Natural disasters including windstorm, hail, and lightning
- Lawsuits
- Injury
- Furnishings protection
Optional Coverage
In addition, Steadily insurance for landlords can cover:
- Riots and civil commotion
- Explosions
- Volcanic eruptions
- Damage caused by vehicles
Additional Options and Features
The Steadily team of insurance agents can help real estate investors find the right coverage for anything from a single income property in one market, to an entire portfolio spread nationwide.
Property Types
The Steadily insurance is available for single family homes, multifamily homes, condo units, apartment buildings, and manufactured homes. It protects both occupied and vacant or restoration properties. Steadily works with short term rentals (Airbnb, Vrbo, etc.) and long term rentals, which makes them the best landlord insurance company for different types of rentals. Steadily is present in all 50 states, so it can meet the needs of all landlords looking for insurance companies near me and investing in all the best rental markets.
Cost
The cost of the Steadily insurance for landlords varies by location, property type, and selected coverage. Interested investors can get accurate insurance quotes within minutes. Steadily rates are always competitive compared to other local providers.
Customer Reviews and Testimonials
Unlike other top landlord insurance companies, Steadily has impressive overall ratings on review websites, demonstrating customer satisfaction with the provided rental home insurance coverage and pricing.
#7: Travelers: Best for Different Rental Properties
Travelers is the oldest company on our list, having been founded in 1853. To this date, the company provides landlord insurance with good coverage in the majority of the US market. We’ve ranked them as the best option for different types of residential rentals.
Policy Coverage
The standard Travelers insurance for landlords includes:
- Coverage for the rental property and other structures including garages and sheds
- Landlord’s personal property such as household furnishings and appliances
Optional Coverage
Additional coverage can take care of:
- Premises liability including bodily injury and property damage
- Medical expenses
- Loss of use coverage
Additional Options and Features
Landlords can bundle their rental house insurance with umbrella insurance, jewelry and valuable items coverage, and boat and yacht insurance if applicable to your situation.
Property Types
Travelers works with single family homes, duplexes, triplexes, quadruplexes, condos, apartments, and other multifamily homes of up to four residential units. This wide coverage makes them the best rental property insurance company for different types of properties. Their services are available in 42 states.
Cost
The cost of the Travelers insurance depends on a number of factors.
Customer Reviews and Testimonials
There are many customer reviews of Travelers, with overall ratings ranging from poor to average.
To get a quote from Travelers landlords can click here to find and contact a local agent in their market.
#8: State Farm: Best for Rental Apartments
State Farm is yet another leading name in the insurance industry in the US. Established in 1935, the company has national coverage. We’ve ranked State Farm the best insurance provider for rental apartments due to their specialized focus.
Policy Coverage
The State Farm landlord insurance coverage is truly comprehensive, including:
- Building property including the apartment and other structures such as garages, storage buildings, swimming pools, fences, and others
- Comprehensive general liability
- Loss of income
- Equipment breakdown
- Tenant move back expenses
- Heating or air conditioning loss reimbursement
- Fire
- Natural disasters
Optional Coverage
Moreover, real estate investors can opt in for:
- Data compromise and identity restoration
- Ordinance and law
- Life insurance
- Buy-sell agreements
Additional Options and Features
One of the main benefits of State Farm is that policies are fully customizable so that investors can choose the coverage that they need and can afford.
Property Types
The State Farm insurance covers exclusively apartments and is available in all 50 states plus the District of Columbia.
Cost
The price of the State Farm policy is determined by numerous factors.
Customer Reviews and Testimonials
There are many thousands of State Farm customer testimonials available online. Overall ratings are both positive and negative.
To get a quote from State Farm, landlords can click here to find and contact a local agent in their market.
#9: Foremost: Best for Multiple Rental Properties
Number 9 on our list is Foremost. Founded in 1952, this company insures short term and long term rental properties in the entire US market. We’ve chosen them as the best landlord insurance company for investors with multiple rentals because of the available discounts.
Policy Coverage
The standard Foremost policy covers:
- Named peril coverage including fire, explosion, lightning, windstorm, and hail damage
- Coverage for the dwelling and other structures like garages
- Liability coverage
- Actual cash value or replacement cost
Optional Coverage
As one of the best landlord insurance companies, Foremost offers a number of different additional policies:
- Loss of rents
- Landlord personal injury
- Other structures
- Service line coverage
- Equipment breakdown coverage
- Replacement cost and extended replacement cost
Additional Options and Features
Importantly, Foremost offers access to a few discount options including multi-policy (bundling with auto, motorcycle, or homeowners insurance), multi-dwellings, tenant screening, and landlord association membership.
Property Types
Foremost covers residential properties with one to four units rented out on a short term or long term basis as well as rented out to students. Policies are available in all 50 states.
Cost
The price of the Foremost insurance depends on the location, the property, the coverage, and other factors. There are multiple discounts from which investors can benefit. The multi-dwellings discounts makes Foremost the best option for multiple rentals.
Customer Reviews and Testimonials
Foremost customer testimonials and reviews show varying overall ratings, signifying the widely different experiences customers have had with this company.
To get a quote from Foremost, landlords can click here to find and contact a local agent in their market.
#10: USAA: Best for Landlords in the Military
Last but not least, USAA concludes our list of the best companies for landlord insurance in the USA. Created in 1922, the insurance company covers all US markets. We’ve ranked them as the top company for landlords serving in the military because of the available benefits.
Policy Coverage
USAA covers the following aspects of protecting rental properties:
- Property coverage
- Liability coverage
- Weather-related damage
- Fire
- Vandalism
- Accidental water damage
Optional Coverage
USAA optional coverages comprise:
- Lost rental income
- Legal fees
- Replacement cost coverage
- Flood insurance
- Umbrella insurance
Additional Options and Features
USAA offers an easy switch from homeowners insurance to landlord insurance for owners who get called away for duty, whether they rent out on a short term or long term basis. The company also provides help with tenant screening. This makes them the best insurance company for landlords in the military.
Property Types
USAA insures single family homes, houses with two to four residential units, and condos, including both traditional rental and vacation rental business properties.
Cost
The cost of the USAA insurance is based on many factors. Landlords can save through bundling, claims-free discount (for five years), and protected home discount (for monitored fire alarm or security system).
Customer Reviews and Testimonials
Thousands of USAA customers have reviewed their services. Testimonials are both good and bad.
To get a quote from USAA, landlords can click here to become a member.
Comparative Analysis: Strengths and Weaknesses of the Best Companies for Landlord Insurance
Comparing the strengths and weaknesses of the the top rental property insurance companie
Landlord insurance companies are as different as everything else in the realm of real estate investing for beginners or pros. They offer different standard coverage, various optional coverages, and varying prices while working with different types of properties, in various markets.
Each company comes with its own pros and cons.
For instance, American Family Insurance, COUNTRY Financial, and Travelers do not cover all states, which means that they might not be available in some of the best Airbnb locations or top cities for long term rentals.
On the positive side, Farmers Insurance, COUNTRY Financial, and Foremost offer excellent optional coverage.
Meanwhile, Steadily is the one company where the strengths clearly outweigh the weaknesses. The coverage is truly comprehensive and applies to both short term and long term rentals of different types. The only thing missing is renters insurance, which no landlord insurance provides.
Choosing the Right Insurance Company for Your Investment
Selecting the best company for your specific needs as a real estate investor is crucially important. This might make the difference between a positive cash flow property business or a negative one.
When choosing the right policy for your investment, you should be guided by the following factors:
- Location and market specificities (natural disasters, crime rates, tenant-landlord laws, etc.)
- Property type, size, age, and price
- Short term or long term rental
- Must-have and nice-to-have additional coverage
- Budget
- Investment goals
- Property management method
Customer Reviews and Testimonials
One of the main factors we took into consideration when ranking the best landlord insurance companies was customer testimonials and reviews. What existing and past rental property owners say about each company reveals the true work of the provider and how well they meet their promises.
It’s important to note that online reviews of most companies are strikingly different, ranging from extremely positive all the way to extremely negative experiences.
Before choosing the right company for their needs, landlords are advised to read through some of the specific reviews of their selected providers to see the main pros and cons.
Conclusion: Protecting Your Real Estate Investments
These are the best landlord insurance companies in the USA for ten different categories. While Allstate and Farmers Insurance stand out for their coverage, Liberal Mutual, American Family Insurance, and Foremost offer important ways to cut the cost. Whereas Travelers works with all types of rental properties, State Farm focuses on apartments. COUNTRY Financial allows investors to choose their preferred claim settlement option, and USAA provides major benefits to landlords in the military. Finally, Steadily offers the best balance between coverage and cost and works with both traditional rentals and Airbnb rentals as the only specialized rental property insurance company on our list.
Once you consider the pros and cons of each insurance provider, it’s important to take the necessary steps today and protect your investment and yourself against the many risks associated with running a rental property business. In this way, you will be able to sit back, and relax, and enjoy the positives including positive cash flow and strong ROI.
