Insurance for Real Estate Investors
Whether you own two rentals or two hundred, your insurance should keep up with every acquisition, LLC, renovation and vacancy. Stonebrook insures real estate investors nationwide, from single-family rental portfolios to mixed-use and commercial buildings.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
Can I insure all my rental properties on one policy?
Often, yes. A blanket or portfolio policy can cover many properties under one program, with one renewal date.
What liability limits do I need for rental properties?
Enough to protect the portfolio, and at least what your lenders and any state or local rules require. Many investors add an umbrella above every property.
Is a vacant building covered?
Often only partly. Many property policies limit coverage after a building has been vacant for 60 consecutive days, so vacant properties need the right policy.
What insurance do I need during a renovation?
Usually builders risk or a renovation endorsement for the property, plus proof that your contractors carry liability and workers’ compensation.
What a real estate investor program covers.
Property
Buildings insured for replacement cost, with ordinance or law coverage for older properties brought up to code after a loss.
Loss of rents
Replaces rental income while a covered loss makes units unlivable, so the mortgage still gets paid.
General liability
Injuries to tenants, visitors and the public arising from your properties.
Umbrella
Higher limits across the whole portfolio, above each property’s liability.
Builders risk and renovation
Protects properties under construction or major renovation, which standard property policies often exclude.
Vacant property
Coverage designed for buildings between tenants, between purchase and renovation, or awaiting sale.
One program for a growing portfolio.
Many investors hold each property in its own LLC. That is good for liability, but it can leave insurance scattered across carriers, renewal dates and named insureds.
A portfolio or blanket program can bring them together: every LLC named, one renewal, consistent limits, and new acquisitions added as you close. Blanket property limits can also share coverage across buildings, so one large loss is not capped by a single building’s limit.
Tell us how every property is titled. The named insured on the policy should match the owner on the deed, and your lender will check.
Properties in many states can be combined under one program, with each state’s requirements handled on the same policy.
Requirements that shape your coverage.
Lenders: mortgage lenders set minimum property and liability limits, require a mortgagee clause, and require flood insurance for buildings in high-risk flood zones with federally backed loans.
Lead disclosure: under the federal Lead-Based Paint Disclosure Rule, landlords of most housing built before 1978 must disclose known lead-based paint hazards and give tenants the EPA pamphlet. Many states and cities add inspection rules of their own.
State and local rules: some states and cities set minimum liability limits for rental owners, require rental registration, or inspect multi-unit buildings. We help you meet the rules wherever you own.
Many liability policies exclude lead. Ask us whether yours does.
What carriers will ask about your properties.
- Addresses, units and occupancy.Residential, commercial or mixed-use, and how many units in each.
- Year built and updates.Roof, electrical, plumbing and heating updates affect eligibility and price.
- Vacancies and renovations.Which properties are empty or under construction, and for how long.
- Ownership.Each LLC or entity and which properties it owns.
- Loss history.Three to five years of loss runs for the portfolio.
A broker who knows your business.
Stonebrook is an independent agency. We work with standard, specialty and excess and surplus lines carriers, so we can shop your portfolio across carriers that specialize in real estate instead of fitting you into one company’s program.
Since 1982 we have placed commercial programs for businesses and property owners across the country. We read the fine print, flag the exclusions that matter for your operation, and advocate for you at underwriting, at renewal and at claim time.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
Real estate investor insurance questions, answered.
What insurance do real estate investors need?
Most investors need property coverage for each building, loss of rents, general liability, and an umbrella over the whole portfolio. Properties under renovation or sitting vacant usually need builders risk or vacant property coverage.
Can I put all my rental properties on one policy?
Often, yes. A portfolio or blanket program can cover many properties and LLCs under one policy with one renewal date, and add new acquisitions as you close.
Are landlords required to carry liability insurance?
It depends on where the property is. Your lender will almost always require it, and some states and cities set minimum liability limits for rental owners. We make sure each property meets the rules where it is located.
Is a vacant property covered by my regular policy?
Often only partly. Many property policies limit or exclude coverage for vandalism, glass breakage and some water damage after a building has been vacant for 60 consecutive days. Vacant properties need a policy written for them.
What insurance do I need during a renovation?
A builders risk policy or renovation coverage for the building, plus certificates showing your contractors carry general liability and workers’ compensation. Without them, an injured worker may look to you.
Should each LLC have its own policy?
Not necessarily. One policy can name multiple LLCs, as long as each entity and property is listed correctly. Your attorney can advise on the liability structure; we make sure the insurance matches it.
Does my insurance cover lead paint claims?
Many liability policies exclude lead. If you own pre-1978 rentals, ask us whether your policy excludes it and what options exist. Federal rules also require lead disclosure for most rentals built before 1978, and some states and cities require inspections.
Can you insure properties in multiple states?
Yes. We place coverage for investors nationwide, and properties in different states can often be combined under one program.
Let’s put your whole portfolio on solid ground.
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