2026-09-26 · 10 min read

The 6 Best Landlord Insurance Companies (2026)

The right landlord insurance is a proper dwelling policy — not your homeowners policy with fingers crossed. A purpose-built rental policy pays your actual repair bills after a fire or burst pipe, carries real liability protection, and keeps rent coming in while the unit is repaired. The wrong setup denies the claim and teaches you this at the worst possible moment. Here are the six best routes in 2026.

First: DP-1, DP-2, DP-3 — what you're actually buying

Every dwelling policy for rentals is written on one of three forms. Know this before you compare quotes:

• DP-1 (Basic): named perils only (fire, lightning, windstorm, hail, riot, aircraft, explosion — the short list). Pays actual cash value — what the roof was worth depreciated, not what a new one costs. Cheapest, thinnest. Fine for a low-value property you're willing to self-insure in spirit; risky for anything else.
• DP-2 (Broad): named perils, longer list — adds things like weight of ice/snow, falling objects, freezing pipes, and accidental water damage from plumbing. Usually actual cash value, sometimes replacement cost by endorsement.
• DP-3 (Open perils): covers everything except what's excluded — and pays replacement cost, which is the number that matters when contractors hand you the bill. This is the gold standard for rentals, and what you should compare every quote against.

Price gaps between forms are real — DP-1 can run noticeably cheaper than DP-3 — but the coverage gap is bigger than the price gap. A DP-3 with a cheap premium beats a DP-1 "deal" every time a real claim happens.

The 6 best options

1. Steadily — best for most landlords

Who it's best for: Landlords with 1–20 properties who want a proper DP-3 without the broker runaround. Steadily is the primary online-first landlord insurer: purpose-built rental policies, quotes and binding in minutes online, available in all 50 states.

Coverage basics: DP-3 (open perils, replacement cost) with dwelling limits up to $1.5M, liability from $300K to $2M, landlord personal property coverage, and roughly 12 months of loss-of-rent income baked in. Covers long-term, mid-term, and short-term rentals, plus vacant and under-renovation properties. Published estimates put a long-term policy around $1,070/year on average, with a $300K dwelling typically landing between $900–$1,800/year depending on state risk, roof condition, and claims history.

One honest drawback: premiums vary sharply by state — that's true of every insurer, but Steadily's online quote can show a bigger number than expected in Florida, California, or hail-belt states where nobody is cheap. It's still insurance: floods and earthquakes need separate policies.

2. Obie — best for portfolio landlords

Who it's best for: Investors scaling up who want instant online quotes and same-day binding across a growing portfolio. Obie covers single-family, 2–4 unit multifamily, 5+ unit apartments, and condos, with property, liability, and loss-of-rent coverage plus short-term rental options — licensed in roughly 50 states.

Coverage basics: DP-3-style landlord policies with the workflows portfolio investors care about: adding and removing properties mid-term, landlord-native quoting, and partnerships across the landlord ecosystem (Roofstock, RentSpree, and others).

One honest drawback: Obie publishes no starting prices, so you can't ballpark it without running a quote — and like every online insurer, it won't handle genuinely unusual properties (mixed-use, historic, coastal high-risk) as well as a human broker who can shop multiple carriers for an edge case.

3. Proper Insurance — best for dedicated short-term rentals

Who it's best for: Full-time Airbnb/Vrbo operators whose "rental" is a business, not a lease. A standard DP-3 typically excludes short-term stays — Proper writes a commercial-grade STR policy that replaces your homeowners/landlord policy entirely.

Coverage basics: commercial general liability starting at $1M per occurrence, loss-of-income coverage, and guest theft/vandalism coverage. Backed by Lloyd's of London and Concert Specialty (both A-rated), licensed in all 50 states, and exclusively endorsed by Vrbo.

One honest drawback: this is commercial insurance priced like commercial insurance — a long-term landlord who mistakenly buys Proper-level coverage for a 12-month lease is overpaying for protection they don't need. Match the policy to the actual use.

4. American Modern — best via independent agent

Who it's best for: Landlords who already work with an independent agent and want a mainstream carrier's paper. American Modern is a major specialty carrier selling dwelling-fire products through independent agents, including its DP-3 comprehensive (replacement cost, up to four-family, homes up to 80 years old) and DP-1 basic (named peril, actual cash value, no age limit).

Coverage basics: optional premises liability from $25K to $500K, with short-term rental options available. Everything is agent-quoted — no consumer-facing online quotes.

One honest drawback: you're buying through a human, with human timelines — days of back-and-forth, portfolio explanations, and carrier shopping that may not produce a meaningfully better price than an online quote for a plain-vanilla rental.

5. USAA — best if you're eligible

Who it's best for: Military members, veterans, and eligible family members who landlord on the side. USAA's rental property insurance covers dwelling repair/rebuild, personal liability, and lost rental income — and notably covers short-term rentals (Airbnb/Vrbo) alongside long-term tenants, which many standard carriers decline. Generally insures up to 10 properties, up to four-family buildings.

Coverage basics: standard DP-3-style rental dwelling coverage with USAA's famously strong claims service — consistently among the best-rated carriers for claims handling.

One honest drawback: eligibility is restricted to USAA members (military, veterans, eligible family). If you don't qualify, this option doesn't exist for you — and even if you do, getting a comparison quote from an investor-focused carrier keeps USAA honest on price.

6. Mainstream carrier via independent broker — best for unusual properties

Who it's best for: Portfolios a standard form doesn't fit — mixed-use buildings, historic properties, coastal high-risk states, or large portfolios where a dedicated agent relationship pays off.

Coverage basics: a good independent agent shops your rental across multiple carriers and places a DP-3 (or carrier equivalent) with liability to $2M+. The advantage isn't the coverage form — it's a human arguing your case with underwriters and finding carriers that price your specific risk fairly.

One honest drawback: this is the slowest route (days, not minutes) and the "shopping multiple carriers" advantage only materializes for genuinely unusual properties. For a standard single-family rental in an average state, a broker usually lands within shouting distance of what Steadily or Obie quote in ten minutes online.

Comparison table

FAQ

Actual cash value vs replacement cost — which do I want?

Replacement cost, almost always. Actual cash value pays your 15-year-old roof's depreciated value — which might cover a third of a new roof. Replacement cost pays what contractors actually charge. This single clause is why DP-3 beats DP-1 when a real claim hits.

Does my homeowners policy cover my rental property?

Almost certainly not the way you hope. Homeowners policies are written for owner-occupied homes; some insurers add a "landlord endorsement," but these often carry vacancy clauses, business-activity exclusions, and liability gaps that a purpose-built DP-3 wouldn't. If your rental is currently on an endorsement, pull the policy and read the exclusions before your next renewal — the answer surprises most landlords.

How much liability coverage do I need?

$500K minimum, $1M preferred for most landlords. Bumping from $300K to $1M typically adds $200–$400/year — cheap for the protection. If your portfolio is large, an umbrella policy stacks on top. Remember the full premium is an ordinary business expense on Schedule E.

What is loss-of-rent coverage?

It replaces your rental income while the property is uninhabitable from a covered loss — fire, major water damage, windstorm. Steadily includes roughly 12 months; other carriers express it as a percentage of the dwelling limit (typically 10–30%). If your mortgage depends on that rent arriving, don't skip this number in the comparison.

The bottom line

For most landlords, this is a two-horse race: get a Steadily quote for the online route (ten minutes, proper DP-3) and one from Obie if you're building a portfolio. USAA members should start with USAA. Full-time short-term rental hosts need Proper Insurance, not a standard DP-3. And for genuinely unusual properties, an independent agent quoting American Modern or another mainstream carrier earns their keep. Whatever you choose — get the DP-3, carry $500K–$1M in liability, and read the vacancy clause before you sign.

See also: Steadily Landlord Insurance Review 2026, Steadily vs Traditional Landlord Insurance, Landlord Insurance Guide, Should You Put Your Rental Property in an LLC?, Rental Property Tax Deductions Checklist.

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