Rental dwelling insurance

You may not live there, but the rental property you own is a big investment. So, just like you protect your own home with insurance coverage, you want to do the same for your rental. A State Farm® Rental Dwelling policy can help pay for property damage, injury and liability claims made against you, even loss of rental income if your property is damaged by a covered loss.

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What is a rental dwelling policy?

The State Farm Rental Dwelling policy helps cover accidental, direct physical loss to your rental dwelling and your personal property located there, based upon the coverage provided by your policy.

This policy may help with the following coverages:

  • Dwelling coverage: To help pay for covered repairs or reconstruction of the dwelling and other structures on the same property.
  • Personal property coverage: To help pay for covered losses to specific property located at your rental dwelling. This includes furniture and other personal property rented with or used to maintain the property.
  • Loss of rents coverage: To help reimburse you for loss of fair rental value if your rental dwelling is damaged by an insured loss that causes the property to be uninhabitable.
  • Liability coverage: To help protect yourself financially against costly covered liability lawsuits.

What’s not covered in a rental dwelling policy?

While State Farm Rental Insurance provides broad coverage, it does not provide coverage for every loss. Examples of losses not insured include, but are not limited to:

  • Damage caused by continuous or repeated seepage or leakage of water or steam
  • Water damage caused by flood or underground water
  • Earth movement including earthquake and landslide
  • Damage caused by settling, deterioration, contamination or nuclear hazard
  • Damage caused by birds, rodents, insects or domestic animals

Discounts for a rental dwelling policy

Home alert discounts

You may qualify for insurance discounts if you install fire, smoke, or burglar alarms or other home monitoring system.

Coverages included in the rental dwelling policy

Inflation coverage

This coverage automatically increases the amount of insurance on the dwelling and personal property as inflation increases the cost of replacing your property. The changes are based on the movement of an inflation index and are reflected in the premium on each renewal.

Replacement cost dwelling coverage

Helps pay for the cost to repair or replace the dwelling up to a specified limit.

Frequently asked questions about a rental dwelling policy

A rental property insurance policy may cover tenant damage in some situations. Accidental damage by a tenant is often covered. However, intentional damage or normal wear-and-tear is often excluded in most policies. Tenant-owned personal property is not covered by this policy. Tenants should explore getting their own insurance for their personal property.

You can, but it's not as easy as sticking a "For Rent" sign in the front yard. Check with your State Farm agent about policies you'll need to help protect your property and yourself. Beyond your insurance coverage needs, you'll also need to know what permits or licenses you may need and more before you even prepare the place for residents.

Coverage options, deductibles, and discounts may affect your policy cost. Check with your State Farm agent to find out what best fits your needs and budget.

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Simple Insights®

Looking for help protecting your rental property? You've come to the right place. Articles from Simple Insights draw on over 100 years of State Farm knowledge.

Actual annual premiums will vary depending on coverages selected, amounts of coverage, deductibles, and other factors. Details of coverage or limits vary in some states. This is only a general description of coverage and not a statement of contract. Coverage is subject to the terms, provisions, exclusions and conditions in the policy itself and in any endorsements.

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