Landlord Insurance in Cleveland: What You Should Know

In Cleveland, nearly 25% of homes were built before 1940, and the pace of new home construction has trailed the national average for decades. While the homes here have character, they also have worn roofs and outdated systems. Add in the city’s icy winters, and one bad storm can cost property owners thousands in repairs. 

Cleveland landlord insurance may not prevent damage, but it can be there to catch you when something goes wrong, preventing those repair bills from draining your rental income. In this guide, we’ll cover everything from landlord insurance costs to the types of coverage available and how to distinguish between landlord insurance vs. homeowners insurance. By the end, you’ll know how to make confident decisions and simultaneously protect your livelihood and your business.

What Is Landlord Insurance?

Landlord insurance exists to protect a property you rent to other people, whether it’s a duplex, apartment unit, or multi-family home. There’s no state or federal law saying you need to have a policy, but mortgage lenders usually make it a requirement. Most ​​landlord insurance in Cleveland has three main components: 

1. Dwelling coverage: Pays for repairs to the physical structure after a covered event, such as wind damage, fire, hail, or lightning. 

2. Liability coverage: Protects you if someone is injured on your property (whether a tenant or guest) and you’re found legally responsible. It covers legal defense fees, settlements, court fees, and medical bills. 

3. Loss of rental income: Replaces the rent payments you can’t collect if your property becomes uninhabitable due to a covered claim, like water damage. 

It’s equally important to know what isn’t covered. A standard Cleveland landlord insurance policy typically won’t pay for tenant possessions, intentional damage, everyday wear and tear, pest infestations, mold, or damage from floods and earthquakes unless you’ve purchased an add-on. Likewise, if you haven’t stayed on top of regular maintenance and it results in damage, many companies won’t cover the damage, viewing it as the result of neglect. 

Some of the most useful Cleveland landlord insurance endorsements (optional coverages) include:

• Flood insurance for properties near the Cuyahoga River, Big Creek, or lakefront areas with known flood histories.

• Equipment breakdown coverage to handle sudden furnace or boiler failures, which can be particularly relevant in older homes with aging systems during the winter.

• Vandalism and theft protection for properties in neighborhoods that experience higher vacancy turnover or property crime.

• Vacancy coverage that keeps your policy’s protection in place if a unit sits empty for more than the typical 30–60 day limit.

• Building code upgrade coverage to help pay for bringing older homes up to current building codes after damage. 

• Coverage for landlord-owned property, such as appliances, tools, or furniture you’ve supplied for tenants’ use or maintenance of the unit. 

These add-ons can significantly change the amount of protection you have, making it less likely you’ll have to cover major expenses out of pocket. 

Landlord Insurance vs. Homeowners Insurance

If you’ve ever assumed that your homeowners insurance policy will also protect your rental, you’re not alone, but it’s a costly misconception. A homeowner’s policy is designed for owner-occupied properties and covers your personal belongings, temporary housing if you have to move out, and a smaller range of liability situations. 

Landlord insurance in Cleveland, on the other hand, is meant for properties where tenants live. They account for the increased likelihood of claims, the different types of damage rentals often go through, and the fact that you’re operating an income-producing business. This means broader liability coverage for tenant and guest injuries, protection for the rental income you’d lose after a covered event, and higher coverage limits aligned with business-level risks. 

Because of this expanded protection, landlord insurance costs 15-25% more than a homeowners policy, on average. However, unlike your personal home insurance, landlord premiums can usually be written off as a business expense. 

If you’re renting out a property, even part time, make sure you understand landlord insurance vs. homeowners insurance and switch to the right coverage. Otherwise, a single uncovered claim could cost far more than the premium savings. 

Different Types of Rental Property Coverage

If you’re looking to get the most coverage for the best price, it’s important to be proactive and knowledgeable about the different options for landlord insurance in Cleveland. The three main policies (DP1, DP2, and DP3) each offer varying levels of protection and are suited to different types of rental properties and landlord needs. 

DP1 Policies

DP1 policies (Dwelling Fire Form 1) are the entry-level option for Cleveland landlord insurance. These are “named peril” policies, meaning they only cover specifically named events, like fire, lightning, windstorm, and sometimes vandalism. Payouts are based on actual cash value (ACV), which subtracts depreciation from the replacement amount. In most cases, that means you’ll receive a smaller payout and may need to cover part of the repair or replacement costs out of pocket. DP1 policies tend to be well-suited for lower-value rentals or vacant properties where budget is a bigger concern than full coverage. 

DP2 Policies

DP2 policies (Dwelling Fire Form 2 or Broad Form) are also named peril policies, but they cover more events than DP1, including damage from falling objects, the weight of ice or snow, and certain plumbing issues. These policies pay replacement cost, which means you can repair or rebuild with new materials without losing money to depreciation. Many landlords opt for a DP2 policy because it offers plenty of protection while still being affordable. 

DP3 Policies

The most comprehensive option for Cleveland landlord insurance is a DP3 policy (Special Form). It covers any and all risks unless they’re specifically listed as exclusions in the plan, which makes it an open peril policy. Like DP2, it pays replacement cost and can be customized with endorsements for floods, equipment breakdown, or code upgrades. DP3 policies are recommended for high-value or historic properties, especially in neighborhoods where preserving original architecture is a priority. 

Umbrella Insurance

You can purchase the top ​​landlord insurance in Cleveland, but it will still have its limits. If you’re sued for an amount above your policy cap, you’d have to pay the difference yourself, but not if you have an umbrella insurance policy. These policies extend your liability coverage, often adding millions in protection for a relatively small annual premium averaging $383. If you own multiple rentals, operate properties with shared amenities, or have homes with older features, umbrella insurance could help, providing peace of mind against rare but financially devastating claims. 

Limited Liability Company (LLC)

A Limited Liability Company (LLC) isn’t insurance, but it adds a valuable shield to both your personal assets and your rental business. When you hold your rental property under an LLC, any lawsuits or debts tied to the property generally target the company rather than your personal assets. For Cleveland landlords, especially those with multiple units or higher-value properties, combining the protection of an LLC with the financial coverage of landlord insurance creates a stronger overall defense against loss.

Landlord Insurance Costs in Cleveland

Landlord insurance costs in Ohio sit around $946 annually, coming out to $78.83 per month. However, that price can vary based on factors such as: 

• Location: The riskier your property, the more it will cost to insure. Consider whether the unit is located in an area with a high crime rate or whether the neighborhood sits next to a creek prone to flooding. 

• Age and condition: Modernized plumbing, heating, and roofing can lower rates, but outdated systems often raise them. That means a historic home will often cost more to insure, unless you’ve renovated it. 

• Coverage type: DP3 policies cost more than DP1 but offer broader protection.

• Endorsements: Add-ons like flood or vacancy coverage increase the premium.

• Claims history: Multiple past claims can significantly raise your rates, not just on an individual level, but in the neighborhood as a whole. 

• Security features: Installing cameras, alarms, or updated locks may help reduce costs.

Basic coverage for a newer property in Hunting Valley or Moreland Hills might be relatively cheap compared to coverage for an older unit in Tremont with a long list of add-ons. The key is balancing your comfort level with risk against the level of protection you’re willing to pay for, ensuring your policy is both affordable and strong enough to handle the challenges your property is most vulnerable to.

Step-By-Step: Filing a Landlord Insurance Claim in Cleveland

Most everyone purchases landlord insurance in Cleveland with the hopes they won’t ever have to file a claim. Still, knowing how the process works ensures you’re prepared in case the unexpected happens. From hail damage to vandalism, here are the steps to take to get your payout: 

1. Document everything: Take detailed, time-stamped photos and videos of the damage, both inside and outside of the property. 

2. Prevent further damage: While you generally want to leave everything as-is, you are allowed to protect your property from further damage, especially if there are unsafe conditions. That might mean putting a tarp over the roof, turning off utilities, or boarding up broken windows. 

3. Call your insurer immediately: Most insurance companies require prompt notice of damage. Timely reporting can help you avoid penalties or even a full claim denial, and it also gets the process moving faster. 

4. Submit all required documentation: The insurance company may send you forms to complete (either by mail or online), often with a deadline. You may also need to submit photos you took, repair estimates from local contractors, police reports, or tenant statements if relevant. 

5. Arrange for the adjuster’s visit: Make every effort to work with the adjuster’s schedule, allowing them to conduct the inspection at their earliest available time. Be there in person and walk the space so that you can point out the damages and discuss the timeline of events. 

6. Track all communication: Keep copies of any emails, calls, or mail related to the claim. That way, you have something to refer back to in case of questions or if you need to appeal later on. 

In Ohio, insurers must let you know within 15 days if your claim is missing important details they need to process it. Complete claims must be processed within 30 days if no extra information is needed, or within 45 days if more information is required. Once approved, payment must be sent within 10 days. If your claim is denied or underpaid, you can challenge the decision through the insurer’s appeal process or by getting legal help.

Wrapping Up: Why You Need Landlord Insurance in Cleveland

Owning rental property can be rewarding, but it’s rarely without risk. From weather-related damage and aging buildings to tenant disputes and liability claims, the list of potential setbacks is long. Cleveland landlord insurance gives you the resources to recover quickly and keep your business on track. 

With the right coverage and the right team, you can spend less time worrying about emergencies and more time growing your portfolio. Still, insurance is only part of the equation. Day-to-day care, positive tenant relationships, and proactive maintenance are what keep claims (and stress) to a minimum. That’s where Evernest comes in. Our local property management team protects your investment from every angle, including placing tenants, handling repairs, and reporting damage. Reach out today to see how we can make your everyday life easier and your business more profitable.