Here’s a frustrating fact: The rising cost of landlord property insurance has nothing to do with how well you run your rental property. The rate is set by catastrophe losses, construction prices and reinsurance decisions. Historically, rates climb whether or not you ever file a claim. This often comes with a feeling of powerlessness that lands hardest on small landlords.
You can’t change the market, but there’s still plenty you can do:
- Evaluate how well your landlord insurance fits the property
- Decide how much risk you hand your insurer
- Reduce the time spent managing insurance
This article walks through these actions as well as the role software plays in taking the busywork out of your daily routine.
Why landlord insurance costs keep climbing
A rental policy costs more than a comparable homeowner policy because the owner carries liability for tenants and turnover that an owner-occupant does not. Across the industry, total operating expenses reached $8,657 per unit in 2024, with about 89 cents of every rent dollar going toward expenses. NAA data shows insurance is one of the fastest-moving lines inside that total, up 10.8% in 2024 on top of a 25% rise the year before. That leaves little room to absorb a renewal increase.
Why are landlord property insurance costs rising? It’s an important question, and most of the pressure comes from outside the property. Weather-driven catastrophe payouts are up, rebuilding costs have risen and reinsurers have pulled back from the riskiest states. To counter these costs, carriers raise rates and tighten terms to protect their own balance sheets. Premiums often climb faster in states most exposed to hurricanes, wildfire and flood, where some owners face steep annual increases and shrinking coverage options.
Right-size your coverage before you renew
Most owners look at their policy only when the renewal notice arrives. Reviewing it on your own schedule, once a year, is where the savings start. Here are some additional tips to ensure your landlord property insurance meets your needs.
Match your coverage to the property, not the mortgage
Lenders typically require coverage tied to the insured value of the property, which can run higher than what the building would cost to rebuild. Industry advocates argue for pricing coverage against modeled losses, the maximum probable loss in a realistic worst case, rather than full insured value. Ask your broker whether your limits reflect replacement cost or an inflated insured value, and whether the lender’s requirement has any room to move.
Raise your deductible if your reserves can cover it
A higher deductible lowers your premium, and it is the most common lever operators pull: in one NAA survey, 67% of housing providers raised deductibles to manage premium increases. The tradeoff is that you take on more of a loss before coverage begins, so this works only if your cash reserves can absorb that gap without straining operations. Run the premium savings against the deductible increase before you commit.
Drop coverage you’re paying for twice
Layered policies overlap. If you carry a standalone flood endorsement on top of National Flood Insurance Program coverage, or business income coverage that duplicates another policy, you may be paying for the same protection twice. Ask your broker to map every policy against the others and flag the overlaps.
Lower your risk profile to earn better rates
Insurers price the risk they can see. The more you reduce and document, the stronger your case at renewal.
Install and document loss-prevention measures
Water leak sensors, monitored alarms, updated electrical and fire suppression all lower the odds of a claim, and many carriers price that in. Keep dated records and photos of every upgrade so your broker can present them at renewal. An improvement you can’t document won’t help your rate.
Protect your loss history
A clean claims record is one of the biggest factors in what you pay. Carriers raise rates most on properties with a history of frequent or large claims, so handling small losses out of pocket, when you can, keeps your record clean and your renewal lower. Preventive maintenance protects the same record. Spending on upkeep before something breaks keeps small failures from turning into claims.
Move liability off your own policy
Every risk a tenant or vendor carries on their own coverage is a risk your policy doesn’t have to.
Require renters insurance
When residents carry their own renters insurance, their belongings and liability sit on their policy, which reduces the claims that reach yours. Make proof of coverage a lease requirement. Give residents an easy way to buy it at signing so compliance stays high. It helps to walk residents through why the coverage protects them rather than presenting it as one more fee. Residents can enroll in a policy like ResidentShield directly through their Yardi Breeze or Yardi Breeze Premier resident portal during the leasing process.
Track every vendor’s certificate of insurance
A vendor who works on your property without current insurance leaves you exposed if something goes wrong on the job. Collect a certificate of insurance from every vendor and confirm it hasn’t lapsed before you approve their payment. Doing that by hand across a full vendor list is where coverage gaps slip through.
Kim Penitenti at Legacy Builders uses the same alert for vendors who must show a certificate before starting work, getting a notification in Breeze Premier as the expiration date approaches.
In Yardi Breeze Premier, that check happens at payment. When a bill comes in against a vendor whose coverage has expired, the software flags it before the payment goes out.
“When I put a bill in Breeze, it will notify me that the insurance has expired and prompt something like, ‘Are you sure you want to pay this bill?’” — Raven Cerny, director at Petra Management Group
Centralize your insurance paperwork
Insurance involves a lot of paperwork: policies to renew, certificates that expire, claim records you may need on short notice, etc. Keeping everything in the same system you already use for accounting means a renewal date or an expired certificate surfaces as part of your normal workflow instead of as a surprise after a claim.
“Yardi Breeze is like having an accountant, CPA and maintenance compliance officer all in one.” — Chantel Figueroa, CLF Property Management
Quick reference: Ways to manage landlord insurance costs
| Policy lever | What to do | Why it works |
| Right-size coverage | Review annually and match limits to replacement cost, not an inflated insured value | Stops you paying for coverage you don’t need |
| Deductible | Raise it if reserves can absorb the gap | Lowers the premium |
| Overlapping or duplicate policies | Map every policy for overlap | Removes coverage you’re buying twice |
| Risk | Add loss-prevention measures and keep dated records | Gives your broker evidence for a better rate |
| Loss history | Handle small losses out of pocket and maintain preventively | Frequent claims raise renewals |
| Liability | Require renters insurance and verify vendor certificates | Moves claims onto others’ policies |
| Recordkeeping | Keep policies and certificates in your management system | Catches lapses before they cost you |
The bottom line for small owners
If your insurance paperwork is scattered across your files today, that is the easiest piece to fix first. See how Yardi Breeze centralizes policies, vendor certificates and renewal tracking alongside the rest of your operation.
Frequently asked questions
A rental exposes the owner to liability a homeowner doesn’t carry, including tenant injuries and the cost of lost rent after a covered event. Carriers price that added risk into the premium.
Review your policy once a year, on your own schedule, rather than waiting for the renewal notice. An annual review is your chance to catch coverage that no longer fits the property and catch overlapping policies.
It can. When residents carry their own coverage, more claims land on their policy instead of yours, which helps protect your loss history and your renewal rate. What you can require varies by state, so confirm the rules where you operate.
It lowers the premium, but it only makes sense if your reserves can cover the higher out-of-pocket amount on a claim. Weigh the premium savings against the added risk before you change it.
Disclaimer
This article is for informational purposes only and is not insurance, legal or financial advice. Coverage requirements, availability and pricing vary by state, insurer and lender. Consult a licensed insurance broker and review your policy and loan terms before changing your coverage.
