8735 Dunwoody Place STE R Atlanta, GA 30350
Info@Oginsurancehq.com
Your homeowners policy voids the moment you rent out your property. Landlord insurance(DP-3) is what you actually need — covering the structure, lost rental income, and liability when tenantsare involved.
Homeowners policies typically void if the property is rented to non-family tenants.
~$1,500–$2,000/yr per single-family rental.
Loss of Rent coverage replaces income if the property becomes uninhabitable.
Portfolio discounts available for 2+ rental properties
Covers the physical structure of the rental property — walls, roof, floors, and built-in appliances — against fire, windstorm, hail, and other covered perils.
Covers detached garages, fences, and outbuildings on the rental property.
If the property becomes uninhabitable due to a covered loss, this reimburses your lost rental income during the repair period. A critical coverage often missing from basic DP-1 policies.
Covers your liability if a tenant or guest is injured on the property due to your negligence as a landlord — broken steps, faulty wiring, inadequate lighting, etc.
Standard homeowners policies exclude tenant-caused damage. Landlord policies typically include or offer this as an endorsement — critical for high-turnover rentals.
Pays for minor injuries sustained by guests on the rental property,
regardless of fault.
Extends Loss of Rent coverage to include civil authority closure — if government authorities restrict access to the property after a covered disaster, rent loss is covered during the restriction period.
Automatically increases dwelling coverage limits annually to keep pace with construction cost inflation — especially valuable in markets where construction costs have risen sharply.
If you own 2+ rental properties, a portfolio endorsement with a single carrier can reduce administrative complexity and often qualifies for a multi-property discount.
Marcus had been renting out a duplex in Lexington, Kentucky for three years on his existing
homeowners policy — he had just never switched it over. A kitchen fire caused by a tenant destroyed one unit. His homeowners carrier denied the claim entirely: the property was rented, which voided the policy. Total loss: $67,000 in structure damage + $14,400 in lost rental income. Coverage paid: $0.
“My agent should have told me. The moment you rent it out, a homeowners policy is
basically worthless.”
Most accidental landlords — homeowners who rent out their property — don’t realize they’ve voided their insurance coverage the moment a tenant moves in. A homeowners policy is designed for an owner-occupied dwelling. As soon as the occupancy changes, so does the risk profile — and most carriers stop covering the property.
Landlord insurance (typically a DP-3 policy) is specifically designed for non-owner-occupied rental properties. It covers the structure, your liability as a landlord, and — critically — your lost rental income when the property is damaged and uninhabitable. This handbook explains everything you need to know before you sign the next lease.
A homeowners policy covers an owner-occupied dwelling. A landlord policy (DP-3) covers a rental property — it includes loss of rental income, landlord liability rather than personal liability, and coverage for tenant-caused damage. Renting your property on a homeowners policy typically voids the policy per the terms of coverage.
No. Landlord insurance covers the structure, your liability, and your lost income. It never covers your tenants’ personal property. Requiring tenants to carry renters insurance protects you from liability claims arising from their belongings and reduces the likelihood of their pursuing you for personal property losses.
If your rental property is damaged by a covered peril and becomes uninhabitable, Loss of Rental Income
coverage reimburses you for the rent you’re unable to collect during the repair period. Without this
coverage, you’re paying the mortgage on a property generating zero income.
Short-term vacation rentals (Airbnb, VRBO) have unique risk profiles that some landlord policies don’t fully
accommodate. Carriers increasingly offer specific short-term rental endorsements. If you’re operating a
vacation rental, let your agent know — standard landlord coverage may not apply.
You can carry individual policies for each property or, if you own multiple properties, explore portfolio
coverage with a single carrier — often with multi-property discounts. Portfolios are available for SFR
investors, small apartment buildings, and mixed residential/commercial properties.
