Washington Landlord Insurance

Landlord insurance—sometimes called “dwelling fire” or “rental property” insurance—is designed for buildings that are leased to others rather than owner-occupied. In Washington, state law does not mandate that landlords carry a dedicated policy, yet most lenders and many municipal ordinances require proof of coverage before issuing occupancy permits or renewing mortgages. Even when it is not explicitly required, the financial stakes make it practically indispensable. Data from the Washington State Office of the Insurance Commissioner show that the average property damage claim filed by landlords exceeded $9,800 in 2022, and liability claims topped $22,300 on average.

Without a specialized policy, landlords face exposure from tenant injuries, structural fires, flooding, vandalism, and even lawsuits stemming from allegations of negligence. Homeowners insurance typically excludes losses incurred while a property is rented out for extended periods (often defined as longer than 30 days). That exclusion leaves a sizable protection vacuum for individuals who convert a residence into a rental or purchase investment property outright.

Moreover, Washington's diverse climate can bring about unique risks that landlords must consider. From heavy rainfall leading to potential flooding in certain regions to the threat of wildfires in more arid areas, the geographical variety presents challenges that can affect rental properties differently. Additionally, the urban centers like Seattle and Tacoma experience a higher incidence of property crime, making comprehensive coverage even more crucial. Landlords should also be aware of the evolving legal landscape regarding tenant rights and responsibilities, as changes in legislation can impact liability and insurance needs significantly.

Furthermore, many landlord insurance policies offer additional coverages that can be beneficial, such as loss of rental income, which compensates landlords for lost rent during periods when the property is uninhabitable due to covered events. This feature can be particularly valuable in Washington’s competitive rental market, where vacancies can lead to significant financial strain. Some policies may also include coverage for legal expenses incurred while evicting a tenant or dealing with disputes, providing landlords with peace of mind and financial protection against the complexities of property management.

Although individual insurers may package coverage differently, most landlord policies in Washington feature several core components:

Dwelling Coverage

This portion reimburses the owner for repairs or rebuilding if the structure is damaged by covered perils—think fire, wind, or certain types of water damage. Landlords should choose limits high enough to reflect local rebuilding costs. With material and labor expenses in Washington rising nearly 15% between 2020 and 2023, underinsuring the dwelling can have serious consequences.

Other Structures

Detached garages, fences, and sheds are commonly included under “other structures.” If a rental includes a backyard studio or accessory dwelling unit (ADU), it is crucial to confirm the insurer extends coverage to these spaces, as some carriers require endorsements for ADUs.

Loss of Rental Income

If a covered loss renders the property uninhabitable, this coverage reimburses lost rent during repairs. In fast-growing markets such as Seattle and Bellevue—where the average two-bedroom apartment rents for more than $2,000 a month—loss of income can quickly surpass the cost of repairs.

Landlord Liability

Liability coverage pays legal fees and settlements if a tenant or visitor is injured due to the landlord’s negligence. Even a seemingly minor incident, such as a slip on icy steps, can lead to a claim. Washington’s comparative negligence laws mean that owners can be held partially liable even when tenants share fault, so robust liability protection—often at least $500,000—is recommended.

Washington’s geography is stunning, but it creates distinct hazards. Tailoring a landlord policy to these perils minimizes blind spots and speeds recovery when events occur.

Earthquake Exposure

Western Washington sits on the Cascadia Subduction Zone, where seismologists forecast a 10–15% chance of a magnitude 9.0 earthquake within the next 50 years. Standard landlord policies exclude seismic activity, so owners who rent in Seattle, Tacoma, or Olympia should strongly consider an earthquake endorsement. Premiums vary by distance to fault lines, but the Washington Geological Survey notes that replacement costs after a large quake could exceed $50 billion statewide.

Flooding Concerns

Inland and coastal flooding threaten a surprising number of Washington properties. The Department of Ecology’s Flood Hazard Map identifies more than 175,000 structures in mapped floodplains. Because federal rules bar insurers from covering flood damage under standard property policies, landlords must obtain separate National Flood Insurance Program (NFIP) or private flood policies if the home sits in a high-risk zone (Zone A or V). Even landlords outside these zones may add optional water back-up endorsements to protect against sewer or drain failures, incidents that accounted for roughly 28% of water-related claims filed in Spokane County last year.

Wildfire and Smoke Damage

Central and Eastern Washington have experienced record-breaking wildfire seasons, with 2020 and 2022 both topping 800,000 acres burned. Wind-carried embers can ignite roofs miles away, while smoke infiltration renders units temporarily unlivable. Most landlord policies cover fire damage, but smoke remediation often requires specialized cleaning that may exceed base policy limits. Landlords in Wenatchee, Yakima, and the Methow Valley should verify that “smoke damage” is explicitly included and that loss-of-use limits are adequate to cover lengthy evacuations.

Heavy Rain and Landslides

The Puget Sound region’s infamous atmospheric rivers dump inches of rain in short periods, triggering landslides on saturated slopes. Standard policies classify earth movement as an exclusion. A separate difference-in-conditions (DIC) policy or a ground movement rider, though less common, can bridge that gap. Premiums for such riders typically start around $200 annually per $100,000 of dwelling coverage but vary based on slope stability ratings.

Washington operates under several layers of tenant-protections that intersect with insurance. Statewide, landlords must provide “safe and habitable” premises under the Residential Landlord-Tenant Act (RLTA). Failure to maintain essentials like heat, plumbing, or structural integrity can generate liability claims and, in severe cases, governmental fines. Additionally, municipalities such as Seattle and Bellingham enforce rental registration and inspection programs that require periodic verification of property condition.

From an insurance standpoint, failing to stay compliant can void coverage if an insurer determines negligence contributed to a loss. For instance, a landlord who ignores city-mandated repairs on faulty wiring and later experiences a fire may face a denied claim. Keeping meticulous maintenance records not only satisfies local inspections but also strengthens an owner’s position during claim disputes. Some insurers even offer discounts to landlords who participate in voluntary safety certification programs.

Washington insurers offer several policy “forms,” each designed for different occupancy patterns and building types.

DP-1: Basic Form

Often the least expensive, DP-1 covers a short list of named perils—usually fire, smoke, lightning, and internal explosion. It pays claims on an actual cash value (ACV) basis, subtracting depreciation. While attractive for older or low-value structures in rural counties, its limitations make it risky for higher-value properties or areas prone to multiple hazards.

DP-2: Broad Form

This mid-tier option expands the covered perils to include windstorms, hail, vandalism, and burglary damage. Many Washington landlords choose DP-2 because it offers replacement cost valuation on the dwelling if certain maintenance benchmarks are met. However, earthquake and flood remain excluded unless endorsed.

DP-3: Special Form

DP-3 is the most comprehensive, providing “all-risk” coverage for the structure except for explicitly listed exclusions. It is favored for newer constructions and multifamily properties in urban King and Snohomish counties. Because it offers replacement cost by default and broader loss-of-rent coverage, its premiums can be 15–25% higher than DP-2 but often save money in the long run when major claims occur.

The average cost of landlord insurance in Washington ranged from $1,190 to $1,860 annually per $300,000 of dwelling coverage in 2023, based on data gathered from five leading carriers. Rates fluctuate substantially depending on:

Location

Properties in earthquake-prone Puget Sound or wildfire corridors east of the Cascades incur surcharges up to 35%. Meanwhile, rentals in Thurston and Clark counties, with lower claim frequencies, lean toward the state average.

Building Characteristics

Larger square footage, older wiring, and wood-shake roofs increase premiums. Upgrading to Class A fire-rated roofing, installing seismic retrofits, and replacing knob-and-tube wiring can each shave 5–10% off the annual rate.

Occupancy Type

Short-term rentals (STRs) listed on platforms like Airbnb are treated as higher risk. Insurers either exclude STR activity or require dedicated commercial or “host guarantee” riders. Expect premiums 20–40% above comparable long-term rentals.

Deductible Choices

Increasing the deductible from $1,000 to $2,500 can reduce premiums by 8–15%. However, Washington’s severe-weather profile means landlords must weigh that savings against the likelihood of having to pay a larger amount out of pocket after wind or water damage events.

When disaster strikes, an organized approach can expedite payments and minimize disputes.

Immediate Documentation

Photograph and video the damage as soon as it is safe. Washington insurers generally require notice of loss within 14 days, but prompt reporting is ideal. Collect tenant statements while details are fresh; these can reinforce timelines or clarify how an incident unfolded.

Mitigation Duties

Policies mandate “reasonable measures” to prevent further damage. That could include tarping a roof, shutting off water, or boarding windows. Keep receipts; insurers typically reimburse mitigation costs.

Working With Adjusters

Insurers send either staff or independent adjusters to assess losses. Landlords retain the right to hire a public adjuster, yet must notify the carrier. In complicated losses—such as when earthquake and fire interplay—having a professional advocate versed in Washington building codes can significantly increase the payout.

Communication and Recordkeeping

Maintain a claim log that notes dates of phone calls, emails, and site visits. Under Washington Administrative Code (WAC) 284-30-360, insurers must respond to communications within 10 business days; meticulous records keep carriers accountable and prove invaluable if the claim escalates to mediation or litigation.

Insurance costs are deductible business expenses, but strategic savings can free capital for other upgrades.

Bundle Policies

Carriers routinely discount 10–20% when landlords group multiple rentals or pair property coverage with umbrella liability or auto policies.

Invest in Safety Upgrades

Washington fire codes increasingly favor hardwired smoke detectors, sprinkler retrofits, and carbon monoxide alarms. Insurers reward compliance with lower rates, and these devices reduce the likelihood of catastrophic loss.

Screen Tenants Thoroughly

While discrimination is illegal, landlords can conduct lawful background and credit checks. Fewer tenant-caused losses translate to better loss histories and lower renewal premiums over time.

Raise Deductibles Responsibly

Select a deductible that is manageable without straining cash flow. Savings erode quickly if frequent small claims are filed. A reserve fund equal to the deductible amount, kept in a dedicated account, offers peace of mind.

Washington’s insurance market is competitive, and landlords benefit when they shop around. Beyond price, several factors shape a good long-term underwriting partner.

Financial Strength

Look for carriers rated A- (Excellent) or higher by AM Best. Financially sound insurers are more likely to weather catastrophic events—such as a major Cascadia quake—without insolvency.

Claim Satisfaction Scores

Survey data from J.D. Power’s 2023 Property Claims Study placed the national average claim satisfaction at 873 out of 1,000. Local carriers that score above that benchmark often maintain shorter turnaround times and clearer communication, both critical during distressing events.

Local Expertise

Insurers with Washington-based adjusters understand regional construction costs, permitting processes, and environmental hazards. That familiarity can streamline claims. Additionally, some carriers offer risk-engineering visits that highlight cost-effective prevention strategies tailored to Washington’s climate.

Customizable Endorsements



A one-size-fits-all policy rarely works. Ensure carriers offer add-ons for earthquake, flood, short-term rental coverage, and ordinance or law upgrades—particularly important for older properties that might need code-required improvements during repairs.

Does landlord insurance cover tenant belongings?

No. A landlord policy protects the dwelling and the owner’s liability, not the tenant’s personal property. Washington landlords often require tenants to carry renters insurance with at least $100,000 in liability to reduce disputes after losses.

Is landlord insurance tax-deductible?

Yes. Premiums are generally considered an ordinary and necessary business expense under IRS Schedule E. Always consult a tax professional regarding individual circumstances.

Can a landlord require earthquake insurance?

Lenders may impose earthquake coverage as a loan condition, but landlords themselves are not legally required to hold it. That said, given Washington’s seismic risk, many choose to secure at least basic coverage with a 10–20% deductible.

What if the property is vacant?

Standard landlord policies restrict coverage after a property has been vacant for 30–60 days. Owners who anticipate prolonged vacancy should purchase a vacancy endorsement or a separate vacant-dwelling policy to avoid claim denials.

How much liability coverage is enough?



For single-family rentals, $500,000 per occurrence is a common baseline, but landlords with multiple units often carry $1 million or more, supplemented by an umbrella policy. Rising legal costs and Washington’s comparative negligence laws justify the higher limits.

The Pacific Northwest’s lush landscapes and bustling job centers make Washington a magnet for renters, and that translates into promising returns for property investors. But opportunity carries responsibility. Landlord insurance bridges the gap between risk and reward, shielding owners from costly disruptions and legal battles. By tailoring coverage to local hazards—earthquake, flood, wildfire—maintaining compliance with Washington’s landlord-tenant statutes, and investing in loss prevention, landlords not only protect their bottom line but also provide safer, more stable housing for tenants. Regularly review policies, keep abreast of regulatory changes, and engage with insurers who understand the Evergreen State’s unique challenges. Doing so ensures that when the next storm, shake, or surprise inspection arrives, landlords are prepared, protected, and positioned for long-term success.