Landlord Insurance Cost: What to Expect & How to Save (2026)

Average Landlord Insurance Cost

There’s a huge amount of variation in the cost of landlord insurance. On average, you can expect to pay between $800 and $3,000 per year.

Why Landlord Insurance Costs More Than Homeowners

Don’t be surprised if your quote for landlord insurance exceeds your homeowners insurance premium. Landlord insurance often costs up to 25% more than a homeowners policy for the same dwelling.

These are some of the main reasons landlord insurance is more expensive:

• Insurers tend to get more claims from rentals than owner-occupied homes.
• It often includes loss of rental income coverage, which homeowners insurance does not.
• Rental property owners have more liability exposure than residents who own their homes.

Keep in mind that while landlord insurance covers a lot, it doesn’t cover tenant belongings. Tenants would need a renters insurance policy for that.

Landlord Insurance Cost by State

Some states have higher landlord insurance premiums than others. Some states on the low end are Utah (average premium $900 to $1,400 per year) and Vermont ($950 to $1,400).

Two of the most costly states are Oklahoma (average premium $2,500 to $6,000) and Mississippi ($2,800 to $4,200).

You might notice that even in landlord-friendly states, insurance premiums can be very high. That’s usually because there’s a greater risk of dangerous weather, the cost to rebuild is significant or both.

Factors That Affect Landlord Insurance Premiums

Many factors influence your insurance premiums, but one of the most significant is proximity to weather risks. That’s why policies are often more expensive in areas where tornadoes are common.

Property-specific risks are also important. For instance, older homes often cost more to insure because there’s a higher risk of system failure.

Sample Landlord Insurance Cost Breakdown

Usually, most of your premium goes toward insuring the structure itself. Here’s a fictional breakdown of a $1,350 premium:

• Dwelling Coverage: $1,000
• Vandalism Protection: $200
• Liability/Medical Coverage: $100
• Personal Property Protection: $50

The numbers usually aren’t this round, but many landlord insurance policies are similarly broken down.

Actual Cash Value vs. Replacement Cost Coverage

When choosing a policy, think carefully about this factor. An actual cash value policy will factor in depreciation when reimbursing you for damaged items. Payouts are smaller, but you save on premiums.

Replacement value policies will pay what it costs to actually replace damaged items. However, they tend to come with higher premiums.

How to Lower Your Landlord Insurance Premium

You may be able to lower your premium by taking steps like these:

• Increase your deductible.
• Require tenants to have renters insurance.
• Make safety upgrades to the property.
• Shop around for new rates.

Obtaining the right insurance is one of your most critical landlord responsibilities. It can be tedious (and expensive), but the right policy will keep your investments protected.