Loading
Preparing your coverage insights...
Loading
Preparing your coverage insights...
May 7, 2026
Landlord insurance (dwelling fire / DP-3) is designed for rental properties — covering the structure, liability, and loss of rental income. Learn why homeowners insurance falls short for rentals.
Owning a rental property is a business — and your standard homeowners insurance policy is not designed to cover it. If a tenant is injured on your property, your rental sits vacant after a fire, or a tenant accidentally causes water damage, a homeowners policy may deny the claim because the property was being rented out. Landlord insurance (also called dwelling fire or DP-3 insurance) is built specifically for rental property owners.
Dragon Insurance Services works with individual landlords and small portfolio investors across Pennsylvania, Texas, Virginia, Maryland, Ohio, Tennessee, and Kentucky to find landlord coverage that protects their investment without overpaying. Explore our landlord insurance coverage options or read on for a full guide.
Homeowners insurance (HO-3) is underwritten assuming you live in the property. When you rent it out, the insurer's risk profile changes significantly — you are no longer present to maintain the property or catch small problems before they become large ones. Most HO-3 policies exclude or severely limit coverage for:
Using a standard homeowners policy on a rental property can result in a denied claim when you need coverage most. A proper landlord policy removes these exclusions.
Dwelling Coverage
Covers the structure of the rental property — the roof, walls, floors, built-in appliances, and attached structures — against covered perils including fire, wind, hail, lightning, and in some forms, vandalism. Coverage should be set at the full replacement cost of the structure, not the market value or the outstanding mortgage balance.
Liability Coverage
Protects you if a tenant or their guest is injured on your rental property and sues you. Slip-and-fall accidents on stairs, porch collapses, dog bites involving tenant pets (in some cases), and injuries from property defects can all result in liability claims. Most landlords should carry at least $300,000 in liability — and consider a personal umbrella policy for additional protection.
Loss of Rental Income (Fair Rental Value)
One of the most important coverages for landlords — often overlooked. If a covered loss (fire, major water damage, storm) makes your rental uninhabitable, this coverage replaces the rental income you lose while repairs are made. Most policies cover this for 12 months, though you can often increase the period for larger properties or higher rents.
Other Structures
Covers detached garages, fences, sheds, and other structures on the property — typically 10% of dwelling coverage. If your rental has a detached garage or outbuildings that would cost significantly more to replace, review this limit.
Optional: Landlord's Personal Property
If you furnish the rental or keep lawn care equipment and appliances at the property, you can add coverage for your personal property at the rental location. This is separate from your tenant's belongings — tenants should carry their own renters insurance policy.
Landlord insurance typically costs 15–25% more than a standard homeowners policy for the same property, reflecting the additional risk of a rental. Typical annual costs across our states range from roughly $800 to $2,500+ per property, depending on location, property type, and coverage limits. Texas landlords typically pay more due to severe weather exposure.
Key factors that affect your landlord insurance premium:
Yes — and it is a standard practice that landlords across all 7 states we serve increasingly require. Here is why it protects you:
Benefits to you as a landlord
Benefits to your tenants
If you own multiple rental properties, a portfolio approach to coverage often makes sense. Some carriers offer blanket landlord policies that cover multiple properties under a single policy — simplifying renewals and sometimes offering better rates per property than individual policies. Talk to us before purchasing separate policies on each unit.
Have the property address, year built, number of units, and current monthly rent ready — we can usually start a quote the same day.
Visit us: 1525 Cedar Cliff Dr STE 202, Camp Hill, PA 17011
Serving landlords across PA, TX, VA, MD, OH, TN, and KY.
Dragon Insurance Services LLC is a licensed independent insurance agency. No state in our service area mandates landlord insurance by law, though mortgage lenders typically require it and lease agreements may impose requirements. Coverage availability, terms, and rates vary by carrier, state, property type, and individual circumstances. Rate estimates are general market examples and do not constitute a quote or guarantee of specific pricing. Contact us for a personalized quote.
Explore Related Coverage
Ready to compare carriers and get a quote?
Dragon Insurance is an independent agency in Camp Hill, PA — we shop 30+ carriers to find your best rate.