Your go-to guide for protecting rental properties in New York, New Jersey, and Connecticut
Introduction
Renting out property can be a powerful wealth-building tool, but it also opens the door to serious risk. If you think your homeowners insurance has you covered, think again.
Landlord insurance is built specifically for the risks that come with renting out a property. Whether you’re managing a single-family home or a multi-unit apartment building, understanding this coverage is critical to protecting your investment.
What Is Landlord Insurance?
Landlord insurance is a type of property insurance designed to protect property owners who lease their homes, condos, or buildings to tenants. It typically includes three key areas of coverage:
- Property Protection
Covers damage to the structure from fire, storms, theft, vandalism, and more. - Liability Coverage
If someone is injured on your rental property and you’re found responsible, liability insurance helps cover legal and medical costs. - Loss of Rental Income
If the property becomes uninhabitable due to a covered loss (like a fire), this helps replace lost rent while repairs are made.
What Does Landlord Insurance Typically Cover?
| Covered | Details |
|---|---|
| Structural damage | Fire, wind, hail, lightning, and more (depending on the policy) |
| Detached structures | Garages, fences, sheds—if listed in your policy |
| Landlord’s personal property | Appliances or tools used to maintain the rental |
| Liability | Tenant or guest injury lawsuits and legal fees |
| Loss of rent | If your tenant has to move out due to covered damage |
What It Doesn’t Cover (And Why It Matters)
| Not Covered | Why |
|---|---|
| Tenant’s belongings | Tenants need renters insurance for their personal items |
| Maintenance issues | Landlord insurance won’t cover wear and tear or negligence |
| Floods and earthquakes | These usually require separate policies |
| Short-term rentals (Airbnb) | Not always covered without specific endorsements |
| Intentional damage | Damage caused by the landlord or tenants may be excluded |
If you don’t understand these exclusions, you may assume you’re covered—until it’s too late.
Why Homeowners Insurance Isn’t Enough
A common mistake we see: investors rent out their property but keep their standard homeowners policy. That’s risky.
Why it doesn’t work:
- Homeowners policies are written for owner-occupied homes.
- Once a property is rented out, insurers may deny a claim or cancel the policy.
- Liability exposure changes dramatically once you have tenants involved.
Landlord insurance is built to handle tenant-related risks, homeowners insurance is not.
Real-World Example: A Costly Mistake
A small multi-family landlord in Westchester had a tenant leave a space heater too close to curtains, causing a fire. The property was under a homeowners policy not a landlord policy. The claim was denied. The owner paid out of pocket for:
- Structural repairs
- Lost rent for three months
- Tenant’s temporary relocation
Total loss: Over $85,000
Had the landlord carried proper coverage, nearly all of it would have been covered.
Optional Add-Ons Worth Considering
To truly protect your portfolio, consider these valuable endorsements:
- Building ordinance or law – Covers upgrades required by newer building codes during a rebuild
- Equipment breakdown – Covers mechanical systems like HVAC and appliances
- Vandalism and theft by tenants – Not always included in base policies
- Flood or earthquake insurance – Essential in high-risk areas
- Non-occupied property insurance – For vacant properties in between tenants
How Much Does Landlord Insurance Cost?
Cost depends on:
- Property type (single-family vs. multi-family)
- Age and condition
- Location (especially risk zones)
- Claims history
- Desired coverage limits
Ballpark:
In the tri-state area, premiums can range from $1,200/year for a small home to $6,000+/year for multi-family buildings with enhanced coverage.
Tip: Bundle policies across your portfolio to unlock multi-property discounts.
How to Get the Right Landlord Insurance
Here’s a quick roadmap:
- Work with a licensed independent agent
Not all carriers offer landlord insurance and pricing and exclusions vary widely. - Disclose your full occupancy situation
Is it tenant-occupied? Vacant? Short-term rental? Misrepresenting this can void coverage. - Review your deductible
Higher deductibles can lower premiums but make sure you can afford the out-of-pocket cost when disaster strikes. - Reevaluate annually
Insurance needs evolve as your portfolio grows, local laws change, or tenants shift.
Why It’s Especially Important in the Tri-State Area
New York, New Jersey, and Connecticut have unique risks:
- Dense buildings with shared walls (fire spread risk)
- Older housing stock with aging infrastructure
- Seasonal weather (snow, hurricanes, floods)
- Strict building codes and tenant protections
Having a local agent who understands the regional market can make a huge difference in tailoring your protection and avoiding unnecessary exclusions.
Protect Your Investment the Smart Way
Landlord insurance isn’t a luxury it’s a necessity. Whether you’re renting out your first unit or managing a growing portfolio, the right coverage protects your property, income, and peace of mind.
At Refine Risk, we specialize in helping real estate investors across Westchester and the tri-state area choose smart, tailored protection without the fine print surprises.
Need a second look at your current policy?
We’re happy to review your coverage, identify gaps, and make sure you’re protected before something goes wrong.
More From The Landlord Guide
- Landlord Insurance Guide: What’s Covered, What’s Not, and Why It Matters
- Apartment Building Insurance Cost Guide for NY, NJ, and CT Landlords
- What Is Landlord Insurance and Why It Matters
- Why Every Growing Business Needs Employment Practices Liability Insurance (EPLI)
- Becoming a Landlord in the Tri-State Area: A Guide to Building and Protecting Your Legacy