Short answer: If you rent out a house or unit in Tennessee, you need a landlord (or “dwelling”) policy — a standard homeowners policy generally won’t cover a property you don’t live in, and a claim can be denied. Landlord insurance covers the building, your liability as the owner, and usually the rent you’d lose after a covered loss. Your tenant’s belongings are their responsibility, through renters insurance.
Why won’t my homeowners policy work?
Because a homeowners policy is written for a home you live in, and renting it out changes the risk — different occupancy, more turnover, and you’re no longer there to catch problems early. Insurers underwrite rentals differently, so leaving a rental on a homeowners policy is a good way to get a claim denied when you need it most.
1. The building and other structures
This is the core: the physical property — the house, plus detached structures like a garage or shed — against perils like fire, wind, and storms. Insure it for what it would cost to rebuild today.
2. Landlord liability
If a tenant or visitor is injured on the property and you’re found responsible, landlord liability responds. As a property owner you’re a target for these claims, so keep your limits healthy and consider an umbrella if you own multiple units.
3. Loss of rental income
Easy to overlook and genuinely valuable: if a covered loss makes the unit uninhabitable, most landlord policies pay fair rental value while it’s repaired, so a fire or major water loss doesn’t also wipe out your rent.
4. What it doesn’t cover — your tenant’s belongings
Your landlord policy covers your building and liability, not the tenant’s furniture, electronics, or clothing. That’s what renters insurance is for. Requiring renters insurance in the lease protects the tenant and cuts down on disputes, and it’s standard practice for good reason.
5. Short-term rentals — a different risk
If you’re renting short-term through something like Airbnb, know that a standard landlord policy may not cover frequent short-term guests. Tell your agent, because you may need a specific short-term-rental policy or endorsement so a guest injury or damage claim is actually covered.
What does it cost?
Landlord coverage is quoted based on the property, its value, the number of units, and how it’s rented. It’s often comparable to — sometimes a bit more than — a homeowners policy on the same house, and far cheaper than an uncovered claim or a lost year of rent.