Landlord Liability Insurance: Do you have enough?

By PropsManager Team | Dec 17, 2025

Landlord Liability Insurance: Do you have enough?

If a tenant falls down the stairs or a balcony collapses, you will be sued.

Dwelling Policy (DP-3)

This is the standard for rentals. It covers:

• Property Structure: Fire, wind, hail, vandalism.
• Loss of Rent: Pays you the rent if the building is uninhabitable during repairs.
• Liability: Covers legal fees and settlements if you are sued for injury.

Liability Limits

Most basic policies offer $100k or $300k in liability. In today's litigious world, this is often not enough. Recommendation: Get at least $500k or $1 Million.

Umbrella Policy

For extra protection, buy an Umbrella Policy. It sits on top of your other insurance and provides $1M+ in additional coverage for a very low cost (often $200-300/year).

Conclusion

Insurance is the one thing you pay for hoping to never use. But when you need it, it saves your financial life.