In this guide, we share dwelling fire insurance considerations for new and experienced private landlords. You’ll find best practices no matter your geography and tips specifically for property owners with ten or less rentals and living in rural areas like Enterprise, Joseph, and near Wallowa Lake.
If you’re asking any of these questions, this blog is a great place to start.
How do I get started?
Do I need a different kind of insurance policy to cover my rental property?
What kind of insurance coverages do I need for my rental property?
How important is liability insurance for landlords?
What questions should I ask my tenants before they move in?
Getting Started with a Rental
As you are starting your real estate investment journey, a few key decisions can impact your insurance options and rates.
Will you and the tenant be living in the same structure? If the tenant(s) will be living in the same house as you and only renting out a room or two, you will need homeowners insurance rather than a landlord policy. Your homeowners insurance policy will require an endorsement to cover the additional liability exposure presented by the renter.If the structure is a duplex, triplex or more and owned by a business, even your own LLC, it is best to insure the whole structure with a landlord policy with the business as the policy holder. For extra protection, you can require each resident to have renters insurance, including yourself if you are living in one of the units.If you will not be living in the same structure, a landlord policy will suit your needs.
Will the unit be available for short or long-term rent? Long-term rentals present less risk as there are less parties moving in and out. Additionally, the vetting process for long-term renters tends to be more robust than short-term renters. Therefore, short-term rental properties tend to cost more to insure than long-term rentals.
Will you furnish the rental? How much? It is typical for landlords to furnish a rental with kitchen appliances. They may also include basic furnishings. A standard landlord policy will include only a few thousand dollars worth of coverage for landlord personal property. Depending on your investment, you may want to consider increasing this coverage.Share an estimate of the appliances and any other furnishings with your agent so that they can ensure you have adequate coverage for these items.
Will you allow pets? If so, what kind and how many? Pets can introduce liability and increased risk of damage to the property. While we all love our furry friends, it can be a good idea to ask potential renters if they have pets, particularly if they have a bite history. We recommend rejecting applicants who have pets who have bitten someone in the past or exotic pets as these will result in an automatic rejection for insurance coverage.

Adhering to Legal Requirements
If you are converting your current primary home to a rental or will be renting out rooms in your home, it is important to contact your insurance first. Offering your home as a rental without notifying your insurance may be cause for the insurance company to reject coverages in the event of a claim or to cancel the policy entirely.
Remember that, as a landlord, you have additional responsibilities to keep the structure and land livable and safe. Refer to your state and local government’s requirements for landlords.
The Difference Between Homeowners and Landlord Insurance
We are often asked whether a homeowners or landlord policy is more appropriate to cover a rental structure. While both homeowners and landlord insurance policies cover the house, there are a few key differences. See the table below for common coverages available on each policy type.
Homeowners | Landlord |
✅ Covers the house structure | ✅ Covers the house structure |
✅ Covers detached structures at an automatic 10% of the house’s coverage | ❌Does not automatically include detached structure coverage |
✅ Covers personal property at an automatic 50% of the house’s coverage | ⚠️ Covers personal property for a specified amount, usually starting at $5,000 |
✅Covers loss of use, the cost to live elsewhere during necessary repairs due to a covered claim | ✅Covers loss of rent, the amount of money you would have gained from rent if the house is unlivable during necessary repairs due to a covered claim |
✅Offers liability insurance protecting you from others suing you for damages incurred on your property or by you and your family members or pets | ✅Offers liability insurance protecting you from a tenant suing you if a tenant is hurt in the home you're renting out and you are found legally responsible |
✅Provides a wide array of endorsements to add additional, optional coverages to your policy | ⚠️ Provides a more limited menu of endorsements |
How Do I Know if I Need a Homeowners or Landlord Policy?
We recommend talking to an insurance agent about your specific situation if you are unsure. Here are a few quick examples to help you discern which option might be right for you.

If you are renting out a property in any capacity, please contact an agent to ensure you are adequately covered.
Will My Premium be Different with a Homeowners Versus Landlord Policy?
It is likely that the same property will have a different premium under a homeowners policy compared to a landlord policy. This is due two primary contributors. First, the risk factors are different. Renting out your property exposes you to additional risk, especially if the property is available for short-term rentals.
Second, the level of coverage can vary. For example, a homeowners policy includes more coverage for personal property as it assumes you will be fully furnishing the home. A landlord policy, on the other hand, assumes a lower level of personal property coverage intended to cover basic furnishings.
Key Insurance Coverages for Rental Properties
There are three absolutely necessary coverages for landlords:
Coverage A: The structure of the house
The amount shown under Coverage A is the estimated cost to replace the house to its current condition. The estimate is based on factors like year built, square footage, roof and siding type, heating type, and any attached structures like garages or decks.
Coverage D: Loss of Rents
This coverage reimburses you, to a certain amount, for the amount of money you would have gained from rent if the house is unlivable during necessary repairs due to a covered claim.
Liability coverage
Liability coverage on a landlord’s policy protects you if someone gets hurt on your property and you are found financially liable for their damages.
Additional coverages will help you and your investment stay protected.
Coverage B: Other Structures
If there are detached buildings on the property, such as a detached garage, you may want to add this coverage to ensure you can replace these detached structures. This coverage may not be automatically included in your landlord insurance package.
Coverage C: Personal Property
This coverage applies to furnishings, essentially anything not permanently attached to the house. Most landlord policies include a base rate of $3,000-$5,000 worth of coverage. However, if you are furnishing with above average materials, it may be necessary to increase this coverage.Share an estimate of the appliances and any other furnishings with your agent so that they can ensure you have adequate coverage for these items.
Water Backup
Water backup insurance covers damage caused by water backing up into a home from a sewer, drain or sump pump failure.
Matching Roof + Siding
Matching roof + siding helps ensure that, if only a portion of your roof or siding is damaged, the replacement will match the original materials as closely as possible. Without this endorsement, insurance companies retain the right to use more cost-effective replacement materials, even if they look different and create a mismatched look for the house.
Extended Replacement Cost
Extended replacement cost increases the amount that can be used to rebuild the house after a covered loss. It is a “buffer” to your house’s base insurance to accommodate for inflation or other factors that may increase the cost to rebuild.
Why Does Liability Risk Increase for Landlords?
As a landlord, you may face greater risk of liability claims. You are legally responsible for maintaining the safety of a rental property. This means you can be held liable for damages sustained by tenants or their guests on the property. The risk factor goes up for short-term rentals since more people will be going on and off the property.
What Should I Require From My Tenants?
Protecting your investment property starts by ensuring that your tenants are trustworthy and protected themselves.
Renters Insurance
We recommend requiring a renters insurance policy with a minimum liability limit of $300,000. A renters insurance policy will cover the tenant’s personal belongings and liability.
Tenant Screening
The level of screening you conduct is up to your discretion. A few potential screens include:
Checking their credit reports
Requesting verification of employment and ensuring their current salary can afford your monthly rent
Checking for criminal records
Reviewing their rental history
Federal law prohibits housing discrimination based on color, disability, familial status, national origin, race, religion and sex. States and municipalities may have their own regulations as well. To help make sure you comply, use a standard rental application for all prospective tenants to complete.
Tips for Landlords in Wallowa County, Oregon
As a landlord in a rural area, you may have different considerations than a landlord in a more urban setting. While towns like Enterprise and Joseph, Oregon are stunning, it can be challenging to find affordable insurance due to increased fire risk in this area. Start the insurance shopping process early, particularly if your rental is located outside of town or near Wallowa Lake.
If you are renting to folks new to the area, it can be helpful to guide them through some rural living tips. Here are a few ideas.
If your rental has a wood fireplace or wood stove, provide a walk through of how to start a fire. You, as the landlord, take responsibility for getting the chimney cleaned annually.
Discuss the presence of wildlife, highlighting their frequent appearances on highways and the importance of not feeding wildlife.
Share what they can expect from the weather, particularly in winter. Ask them to open cupboards or even drip sinks in the winter when temperatures are below freezing.
Help connect them to the community. Studies show that when tenants feel that they belong in the community and have a safe home, they are more willing to upkeep the property and contribute to a thriving neighborhood.
How to Insure Your Rental Property
Landlord insurance is often relatively easy to acquire. Fill out our easy online quote request for your rental and get started today. We will call or email your quote in 2-3 business days.
If you would like to discuss scenarios or determine if you need landlord insurance, please call us at 541-426-4208 or email hailie@hillockins.com.
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