By Brandon Thompson, CEO and Co-Founder, MBG Insurance | Updated September 2026
Whether you own one rental house or a dozen, the policy on that property is doing a very different job than the one on your own home. It has to protect a building you don’t live in, from risks created by people you don’t control, while also protecting the income that property is supposed to produce. Here’s what a solid rental property policy should include, and where we see landlords in Missouri and Arkansas most often come up short.
Why a Homeowners Policy Won’t Work on a Rental
A standard homeowners policy is written for an owner-occupied home. Once you move out and a tenant moves in, that policy is no longer a fit, and a claim filed on the wrong policy type can be denied. Rental properties are typically written on a dwelling fire policy, often called a landlord policy, which is underwritten specifically for non-owner-occupied homes.
Core Coverages on a Rental Property Policy
Dwelling Coverage
Pays for covered damage to the rental home itself, up to rebuilding it after a total loss. If you have a mortgage, your lender will require this, and they won’t forgive the balance just because the house burned down.
Other Structures
Detached garages, sheds, and fences on the property. Check that these are included and that the limit makes sense for what’s actually there.
Loss of Rents (Fair Rental Value)
If a covered loss makes the property uninhabitable, this coverage replaces the rent you would have collected while it’s being repaired. For many landlords, this is what keeps the mortgage paid during a rebuild. Don’t assume it’s automatically included on every policy.
Premises Liability
Protects you if someone is injured on the property and you’re found responsible. Maintenance is the landlord’s job. If a handrail comes loose and a tenant falls, or a broken step causes an injury to a guest, the claim often comes back to the owner. This is a must-have on every rental.
Replacement Cost vs. Actual Cash Value
This is one of the most important details on the declarations page, and one of the most overlooked.
- Replacement cost pays to repair or rebuild with materials of like kind and quality, without deducting for age or wear.
- Actual cash value (ACV) pays what the damaged property was worth at the time of loss, meaning depreciation comes out of your check.
On an older rental, the difference between the two after a roof or fire claim can be substantial. Some carriers only offer ACV on certain homes, so it’s worth knowing exactly which one you have before a claim, not after.
Coverages Landlords Commonly Forget
- Water back-up: Sewer or drain back-up is usually excluded unless you add it by endorsement.
- Equipment breakdown: Can help with sudden mechanical or electrical failure of systems like HVAC and water heaters, depending on the carrier.
- Vacancy: Many landlord policies limit or eliminate coverage if the home sits vacant for more than 30 to 60 consecutive days. Long turnovers or renovations between tenants should be discussed with your agent.
- Umbrella liability: Once you own several properties, an umbrella policy can add a layer of liability protection above your underlying limits.
Owning Multiple Rentals or Using an LLC
If you own several properties, many carriers allow you to schedule multiple homes on one policy, which simplifies renewals and billing. Larger portfolios or commercial buildings may be better suited for a commercial package or a Lessor’s Risk Only (LRO) policy.
If your rentals are owned in an LLC, the LLC should be the named insured on the policy. Insuring an LLC-owned property in your personal name can undercut the liability protection you set up the LLC to provide.
Your Tenant Needs Coverage Too
Your landlord policy protects the building. It does not cover your tenant’s furniture, clothing, or electronics, and it doesn’t protect them if they cause damage or injury. Requiring renters insurance in your lease protects both of you. For more on that, see our article on the 5 Rules Every Landlord Should Live By.
Compare Rental Property Insurance in Missouri and Arkansas
As an independent agency, MBG Insurance works with multiple carriers, so we can compare coverage and pricing instead of fitting your rental into the only policy one company offers. We serve landlords from our Springfield and Oak Grove, Missouri offices and our Bentonville, Arkansas office. If your properties are in Northwest Arkansas, you can also learn more on our Arkansas Landlord Insurance page.
Ready to review your rental coverage? Start a quote or call Springfield at (417) 773-7822, Oak Grove at (816) 690-2640, or Bentonville at (479) 350-6862.
Reminder: Everyone’s situation is different. These concepts may not apply to your specific circumstances. We recommend talking with your agent, broker, insurer, or legal counsel about your individual needs, coverage, and exposure.
About the Author
Brandon Thompson is the CEO and co-founder of MBG Insurance and a Certified Work Comp Advisor (CWCA). A Pea Ridge, Arkansas native, Brandon founded Millennium Brokers in 2017 and opened MBG’s Bentonville office in 2026. His areas of expertise include workers’ compensation, high-value homes, lessor’s risk, and tree care risk.