Landlord Insurance in New York: What a Rental Property Policy Covers

Last updated November 10, 2026 by Matthew Kleinfelder, PRK Insurance Agency, Melville, NY.

Landlord insurance covers a home or building you own and rent to someone else: the building itself, your liability as the owner, and the rent you lose while a unit cannot be lived in after a covered loss. A homeowners policy is written for a home you live in, so it is the wrong policy once a tenant moves in. This guide explains what a New York rental property policy covers, what it leaves out, what drives the price on Long Island and what to ask before you buy.

Key takeaways

• A homeowners policy is not written for a rented home. Once a tenant moves in, the property needs a landlord policy.
• A landlord policy has three main parts: the building, your liability and loss of rents.
• It does not cover your tenant’s belongings. They need a renters policy of their own.
• Flood is never included. Rising water takes a separate flood policy.
• On Long Island, distance from the water sets the wind or hurricane deductible and often the price.
• Policies differ in which causes of damage they cover and in how claims are paid. Ask before you buy.

Who needs landlord insurance?

Anyone who owns a home or building that someone else lives in. That includes:

• Single family homes rented to a tenant
• Two, three and four family homes
• Condos and co ops you rent out
• Small apartment buildings and mixed use buildings
• A home you have moved out of and now rent
• Rentals owned in an LLC or a trust

Live in one unit and rent the other? An owner occupied two family home can often stay on a homeowners policy with the right endorsements. Tell us how the property is used and we will place it on the right form. Our landlord insurance page has the short version of this guide and a quote form.

What does a landlord policy cover?

The building

Repairs or rebuilds the rental after a covered loss such as fire, wind, lightning or a burst pipe. The limit should reflect what it would cost to rebuild the building today, not what you paid for it or what it would sell for.

Other structures

Detached garages, sheds and fences, under their own limit.

Your property at the rental

Appliances, furnishings and equipment you own and keep there, such as a refrigerator, a washer or a lawn mower. It does not cover anything that belongs to your tenant.

Liability

Your legal defense and covered settlements if a tenant or visitor is hurt at the property and you are held responsible. A fall on icy steps or a loose railing is the typical example.

Loss of rents

Also called fair rental value. It pays the rent you lose while a unit cannot be lived in because of a covered loss, usually for the time it reasonably takes to repair the damage, up to a dollar limit or a set number of months. The mortgage, taxes and insurance still come due after a fire, which is why this part matters.

Basic, broad or special form: which policy is it?

Landlord policies come in three main forms, often written as DP 1, DP 2 and DP 3. The difference is which causes of damage are covered and how a claim is paid.

• Basic form covers a short list of named causes such as fire, lightning and wind, and usually pays actual cash value, which is the repair cost less depreciation.
• Broad form covers a longer list of named causes and usually pays replacement cost on the building.
• Special form covers the building for any cause of damage the policy does not exclude, and usually pays replacement cost. It is the widest of the three.

The cheapest quote is often a basic form policy. Compare the form as well as the price.

What does landlord insurance not cover?

• Your tenant’s belongings. They need a renters policy of their own.
• Flood. Rising water takes a separate flood policy. Our Long Island flood guide explains the options.
• Wear and tear. Maintenance, aging and gradual leaks are the owner’s cost.
• Unpaid rent. Loss of rents responds to a covered loss, not to a tenant who stops paying.
• Long vacancies. Many policies cut back coverage after 30 to 60 days empty. Tell us before a unit sits vacant.

How much liability coverage does a landlord need?

Landlord policies are commonly written with $300,000, $500,000 or $1 million of liability. The right limit depends on what you own and what you could lose in a lawsuit. Owners with more than one property, a pool or significant savings often add an umbrella policy, which sits on top of the landlord policy and adds $1 million or more.

Should my tenants carry renters insurance?

Yes. Your policy does not cover their furniture, clothing or electronics, and it does not cover their liability if they cause a fire or a guest is hurt in their unit. A renters policy does both, and it is inexpensive. Many landlords ask each tenant to carry one.

What affects the cost of landlord insurance on Long Island?

• Location. Distance to the water affects the wind and hurricane deductible, which is often a percentage of the building limit. See coastal home insurance.
• The building. Age, construction, roof, wiring, plumbing and heating. Updates can lower the price.
• How it is rented. A year lease to a family is priced differently from student housing, seasonal rentals or short term stays.
• Coverage choices. The building limit, the liability limit, the deductible and whether claims are paid at replacement cost.
• Claims history. Prior losses on the property or with the owner.

Each carrier weighs these differently, so the same building can price very differently from one company to the next.

What should I ask before buying a landlord policy?

• Is the building covered for replacement cost or actual cash value?
• Is it a named perils policy or an open perils (special form) policy?
• What is the wind or hurricane deductible, in dollars?
• How long can a unit sit vacant before coverage changes?
• Is the owner on the deed, whether that is you, an LLC or a trust, the name on the policy?
• If the building heats with oil, how would a tank leak be handled?

Common questions

Does homeowners insurance cover a house I rent out?

Usually not. A homeowners policy assumes you live in the home. If you rent it out and have a loss, the claim can be denied or reduced. Tell your agent before a tenant moves in.

Can a rental owned by an LLC or a trust be insured?

Yes. The policy should be in the name of the owner on the deed, whether that is you, an LLC or a trust.

Are short term rentals covered?

It depends on the carrier. Some landlord policies do not cover short term stays, and some carriers write them with an endorsement or a separate policy. Tell us how the property is rented.