Updated for 2026 by Richey Insurance Agency, based on current carrier pricing, underwriting guidelines, and real landlord claims we see across high-risk and rental-heavy markets.
Landlord insurance costs and coverage rules continue to change fast in 2026. Premiums are rising, underwriting is stricter, and many rental properties are more exposed than owners realize.
Below, we break down the most important landlord insurance statistics shaping the market this year—what they mean in real terms, why they matter, and how they affect coverage, claims, and long-term rental risk.
Landlord insurance costs vary widely based on location, rebuild cost, weather risk, and coverage structure. In 2026, most single-family rental homes fall into a clearer pricing range than in past years.
Based on current carrier pricing and national data, landlord insurance in 2026 typically costs $800 to $3,000 per year for a standard 3-bedroom, 2-bath rental property. Higher-risk properties can exceed this range, especially in states with frequent storm losses or rising construction costs.
From what we see working with landlords, pricing moves higher when properties are located in catastrophe-exposed areas or require higher dwelling limits due to increased rebuild costs. In states like Texas, Florida, Oklahoma, Louisiana, and Mississippi, annual premiums commonly reach $2,200 to $4,600+, even for well-maintained homes.
Landlord insurance continues to cost about 15% to 25% more than homeowners insurance for the same property. The difference comes from higher claim frequency, increased liability exposure, and coverage features unique to rentals—especially loss of rental income.
The most common factors driving landlord insurance costs in 2026 include:
One thing we consistently see: landlords who base coverage on outdated rebuild estimates often face premium shocks at renewal—or worse, coverage gaps after a loss. Accurate replacement cost and policy structure matter far more than chasing the lowest upfront price.
Landlord insurance usually costs about 15% to 20% more than homeowners insurance for the same property. This higher cost reflects the added risk that comes with tenant occupancy and the broader protections landlords need.
From our experience, tenants—no matter how responsible—do not maintain a property the same way an owner would. Small issues like leaks, electrical problems, or appliance malfunctions are more likely to go unnoticed or unreported, increasing the frequency and severity of claims. Insurers price for that risk.
Here’s a simplified cost comparison based on current national pricing trends:
| Policy Type | Typical Annual Cost Range |
|---|---|
| Homeowners Insurance | ~$2,300 – $2,600 |
| Landlord Insurance | ~15%–20% higher than homeowners insurance |
Actual premiums vary based on location, rebuild cost, deductible levels, and coverage structure. A newer home in a low-risk area may fall near the lower end, while older rentals or properties in storm-prone regions often price significantly higher.
The cost difference exists because landlord policies include protections that homeowners insurance does not, including:
Homeowners insurance is designed to protect a residence. Landlord insurance is designed to protect an income-producing asset—and the pricing reflects that difference.
Demand for landlord insurance continues to grow as rental property investments increase. In 2023, the market was valued at $20.7 billion, and projections estimate it will reach $40.9 billion by 2032. That reflects a 7.8% compound annual growth rate (CAGR) from 2024 to 2032.
Several factors contribute to this expansion:
With these trends in place, the need for comprehensive landlord coverage continues to rise.
Homeowners insurance rates in the U.S. have climbed meaningfully over the past few years, and 2026 continues to show upward pressure in many markets.
Industry data shows that average home insurance premiums have risen steadily, with some markets reporting double-digit increases over recent years due to inflation, construction cost increases, and weather-related losses.
For example, California insurers have recently filed rate changes averaging around 6.9%, with some policyholders seeing larger adjustments based on wildfire risk exposure.
Other national forecasts suggest that after unusually steep increases earlier in the decade, premium growth is moderating but is still historically high. Some industry estimates indicate average renewal rate increases in the mid- to high single digits year-over-year into 2026, reflecting continued inflation, claim severity, and risk-based pricing.
These patterns affect landlord insurance as well. Landlord policies tend to follow broad homeowners market trends because:
In practical terms, most rental property owners should expect premium increases at renewal, especially in states with frequent severe weather or high rebuild costs. Unlike occasional fluctuation, these rate movements are tied to fundamental cost trends in construction, weather risk, and insurance market conditions—not arbitrary changes.
Claims on rental properties most often stem from property damage and weather-related events, with liability and loss of rental income also common. While specific “landlord claim payout” databases are rare, general property insurance claim payout data gives us reliable insight into likely costs landlords may face after a loss.
According to industry statistics for property damage claims in the U.S.:
These figures help frame what landlords might expect after typical covered losses like water damage, wind and hail, or structural issues—though actual amounts will vary widely based on the event and coverage limits.
Primary reasons landlords file claims include:
Because landlords carry extended risk exposure (rental income interruption, tenant guests, multiple units), these average payouts provide a realistic baseline—though major catastrophe events and liability claims can push individual claim amounts much higher.
While no official annual study tracks the exact amount landlords spend on tenant-related repairs, available data suggests damages are a frequent and costly concern. Even 13% of rental properties experience broken or damaged kitchen items each year, which translates to 5.59 million rental homes requiring fixes (Source: Dream Home Inspection).
Common types of tenant-related damages:
✔️ Appliance wear and tear – Dishwashers, ovens, and refrigerators often require repairs after tenant use.
✔️ Flooring and carpet damage – Heavy foot traffic, pet damage, and spills contribute to costly replacements.
✔️ Wall and paint issues – Holes, scuff marks, and DIY repairs gone wrong add to maintenance costs.
These expenses add up over time, making insurance coverage an important safety net for landlords. Policies with broader coverage can help offset repair costs, though some standard plans exclude tenant-caused damage.
Many rental property owners assume their policies provide full protection, but 70% of residential homes in the U.S. are underinsured, meaning the coverage amount would fall short in a total loss scenario. This issue becomes even more significant for landlords, as rental properties often include upgraded features or amenities that increase rebuilding costs.
Why underinsurance happens:
A policy review can help prevent financial losses in the event of severe property damage. Adjusting coverage to reflect current market values is one way landlords can avoid out-of-pocket expenses after a major claim.
✔️ Landlord insurance costs remain elevated in 2026, with most single-family rentals falling between $800 and $3,000 per year, while properties in catastrophe-exposed states often reach $2,200 to $4,600+, depending on rebuild cost and coverage structure.
✔️ Landlord policies typically cost 15% to 20% more than homeowners insurance, reflecting higher claim frequency, broader liability exposure, and coverage features like loss of rental income.
✔️ The landlord insurance market continues to expand, projected to grow from $20.7 billion in 2023 to $40.9 billion by 2032, increasing underwriting scrutiny and rate pressure across rental-heavy markets.
✔️ Homeowners and landlord insurance premiums are still rising in 2026, driven by construction cost inflation, weather-related losses, and risk-based pricing—most landlords should expect renewal increases, especially in high-risk regions.
✔️ The most common landlord claims involve water damage, storm damage, liability, and rental income interruption, with average property damage and liability payouts often landing in the mid–five-figure range, depending on the loss and policy terms.
✔️ Underinsurance remains a major risk, with an estimated 70% of U.S. residential properties underinsured, often due to outdated replacement cost estimates and insufficient loss-of-rent coverage.
Staying informed about these trends allows landlords to structure coverage correctly, avoid gaps, and reduce financial exposure when losses occur. In today’s market, the right policy matters as much as the price.
