Real Wealth Show: Real Estate Investing Podcast Rental Property Insurance: Liability, Flood, Named Storm & Costly Investor Mistakes
Feb 24, 2026
Seth Markham, an NREIG insurance specialist for rental properties, explains why homeowner policies often fail landlords. He covers landlord vs homeowner coverage, liability limits, vacancy rules, named storm and flood distinctions, deductible strategies, and when to use a specialist insurer. Short, practical warnings about costly coverage gaps.
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Never Insure A Rental With A Homeowner Policy
- Do not use a homeowner's policy for a rental property because it often excludes commercial operations like renting.
- Seth Markham explains landlord policies cover loss of rent and other investor-specific risks that homeowners forms exclude.
Inherited House Led To Denied Claim Example
- A friend kept an HO policy after inheriting a college-town house and was denied coverage when a tenant injury occurred.
- The out-of-pocket orthopedic bill was about $7–8k because the policy excluded rental liability.
Carry A Million Dollar Liability Minimum
- Buy at least $1M liability per occurrence with a $2M aggregate on single-family rentals to protect personal assets.
- NREIG uses that as its industry standard and recommends higher limits for multifamily properties.