Landlord & Rental Property Insurance in Chicago
Coverage options for residential rental property, including the dwelling, certain property, liability and potential loss of rental income after a covered loss.
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Rental property is generally insured on a policy built for that use rather than on a homeowners policy. The occupancy is different, the exposures are different, and the potential for lost rental income after a covered loss is something an owner-occupied policy is not designed to address.
If you own a two-flat and live in one unit, or you moved out of a condo and started renting it, the correct policy form is one of the first things to confirm.
What this coverage may include
Rental dwelling coverage
Coverage for the building itself against covered causes of loss, generally written toward rebuild cost.
Landlord liability
Responds to bodily injury or property damage you are legally responsible for as the property owner, subject to policy terms.
Property you own at the rental
Appliances, maintenance equipment and furnishings you supply may be covered, subject to limits.
Loss of rental income
May help replace rental income lost while a covered loss is repaired, subject to the policy's terms and time limits.
Other structures
Garages, fences and similar structures on the property may be covered, depending on the policy.
Who may benefit from this coverage
- Owners of Chicago two-flats, three-flats and small multi-unit buildings
- Condo owners who now rent their unit out
- Homeowners who moved and kept the previous property as a rental
- Owners between tenants or renovating a unit
- Investors adding a property to an existing portfolio
Coverage decisions worth thinking through
How the property is occupied
Tenant-occupied, owner-occupied with a rented unit, short-term rental and vacant are all treated differently. Occupancy drives eligibility.
Vacancy between tenants
Extended vacancy can affect coverage under many policies. Tell us before a unit sits empty for a long stretch.
Whether to require tenant renters insurance
Your policy generally does not cover tenant belongings. Many owners make renters coverage a lease requirement.
Maintenance and building condition
Roof age, porches, stairs and electrical updates affect both eligibility and how a claim is likely to go.
Chicago rental property
The two-flat and three-flat are the backbone of Chicago rental housing, and many owners live in one unit while renting the others. That mixed occupancy is worth stating plainly on the application so the policy matches reality.
Wood rear porches, basement units and shared utilities show up constantly in city buildings. So does the practical question of what happens to rent if a fire or major water loss takes a unit offline for months.
Why work with the Joe Schneider Agency?
The agency has served Chicago since 2005 from its office on North Avenue, and Joe and his team bring more than 20 years of local experience to conversations like this one. We explain options in plain English, review what you already have, and leave the decision with you.
More than 800 customer reviews across Google, Yelp and the agency website. Read customer reviews
The Joe Schneider Agency is licensed to sell insurance in Illinois, Indiana and Wisconsin.
Coverage availability varies by product, location, eligibility and underwriting requirements. Some products may be offered or issued by third-party insurance providers.
Things people ask us about this coverage.
Can I insure a rental property on a homeowners policy?
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Generally no. Rental property is usually written on a policy designed for that use, which is why we review how the property is occupied.
Does my policy cover my tenants' belongings?
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No. Tenants would need their own renters insurance for their belongings and personal liability.
What happens if I lose rent after a fire?
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Loss of rental income coverage may help replace rent lost while a covered loss is repaired, subject to the policy's terms, limits and time period.
I live in one unit of my two-flat. Which policy applies?
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Owner-occupied multi-unit buildings can often be written on a form that accounts for both uses. The right answer depends on the number of units and the insurer's eligibility rules.
What if a unit is vacant for a few months?
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Extended vacancy can affect coverage. Let us know ahead of time so we can review the policy's vacancy provisions with you.