Your rental property is an investment — not a hobby. Landlord insurance protects the building, your rental income, and your liability when tenants live in your property. A standard homeowners policy won’t cover a property you rent out, and one uninsured loss can wipe out years of rental income overnight.
A landlord insurance policy protects you from the financial risks that come with renting out property. Here are the six key coverages.
Covers the physical structure of your rental property — roof, walls, foundation, and built-in systems — from covered perils like fire, hail, wind, and lightning. This is the foundation of every landlord policy.
Reimburses your lost rent if a covered event — like a fire or major storm damage — makes your rental uninhabitable while repairs are completed. Keeps your mortgage payments covered even when tenants can’t occupy the unit.
Covers legal costs and damages if a tenant or visitor is injured on your rental property and you’re found liable. Protects against lawsuits from slip-and-fall accidents, structural hazards, and other property-related injuries.
Covers detached structures on your rental property — garages, storage sheds, fences, and carports — from the same covered perils as the main dwelling. Typically set at 10% of your dwelling coverage limit.
Covers landlord-owned items left on the property for tenant use — appliances, lawn equipment, maintenance tools, and furnishings in common areas. Does not cover your tenant’s personal belongings; that’s what renters insurance is for.
Covers medical bills for tenants or visitors injured on your rental property, regardless of fault. A smaller coverage (typically $1,000–$5,000) that helps resolve minor injuries before they become costly liability claims.
If you own a property and rent it out, your homeowners insurance policy no longer applies. Homeowners policies are designed for owner-occupied residences, and most carriers will deny claims on a property that’s being rented to tenants. Landlord insurance — also called a dwelling fire policy — is specifically built for rental properties and covers the risks that come with being a landlord: property damage, lost rent, and liability from tenants and visitors.
Denver landlords can choose between two main policy types. A DP-3 (open perils) policy covers all risks unless specifically excluded — it’s the standard choice and what we recommend for most Denver rental property owners. A DP-6 is a modified policy that covers the dwelling on a named-perils basis at actual cash value, which can work for older or lower-value rental properties where full replacement cost coverage isn’t practical.
Denver’s rental market continues to attract investors, and protecting your income stream is just as important as protecting the structure itself. Loss of rental income coverage reimburses your rent payments if a covered event makes the property uninhabitable during repairs. Without it, you’re paying the mortgage out of pocket while earning nothing. Tenant damage is another common concern — standard policies cover sudden and accidental damage from tenants, but intentional destruction and normal wear and tear are excluded. We help Denver landlords understand exactly what’s covered and build a policy that protects both the property and the income it generates.
Homeowners insurance is designed for owner-occupied properties. Once you rent out your home, you’ve changed the risk profile — tenants, liability exposure, and income loss are all different. Most carriers will deny claims on a rental property covered by a homeowners policy. You need a dwelling fire policy (DP-3 or DP-6) specifically designed for landlords.
A DP-3 is an open-perils policy for the dwelling that covers all risks unless specifically excluded — it’s the standard choice for most Denver landlords. A DP-6 is a modified policy that covers the dwelling on a named-perils basis at actual cash value rather than replacement cost. DP-6 can work for older or lower-value properties where full replacement cost coverage isn’t practical.
Standard landlord insurance covers sudden and accidental damage caused by tenants, such as an accidental kitchen fire. However, it does not cover intentional destruction or normal wear and tear. For protection against intentional tenant damage, you may need a separate landlord protection endorsement. Requiring a security deposit and screening tenants carefully also helps reduce your risk.
Yes. Renters insurance protects your tenant’s personal belongings and their liability — it does not cover your building, your lost rental income, or your liability as the property owner. Both policies serve different purposes and protect different people. We recommend requiring tenants to carry renters insurance in addition to your landlord policy.
Landlord insurance in Denver typically costs 15% to 25% more than a standard homeowners policy on the same property because of the additional risks associated with rental properties. Your rate depends on the property’s value, age, location, number of units, and coverage limits. Call us for a free quote to find the right coverage for your rental property.
I started Sierra Insurance Group to help Denver families find coverage that actually fits — at a price that makes sense. We take the time to understand your situation and match you with the right protection, not just the first quote.
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