Does Landlord Insurance Cover Fire Damage? What Property Owners Need to Know

When fire strikes a rental property, the damage can be devastating—for both tenants and property owners. Whether it's caused by faulty wiring, a kitchen mishap, or wildfire exposure, fire damage is one of the most costly risks landlords face. That’s why many property owners ask the crucial question: Does landlord insurance cover fire damage?

The short answer is yes—most landlord insurance policies do cover fire damage - including Steadily's. But the full picture is a bit more nuanced. Let’s take a look at how landlord insurance typically responds to fire-related losses, what you can expect from the claims process, and why having the right policy in place matters more than ever.

What Is Fire Damage Coverage in Landlord Insurance?

In most landlord insurance policies, fire is considered a covered peril. This means your policy will typically help pay for:

• Repairs to the structure of the home (walls, roof, floors, etc.)
• Replacement or repair of major systems, like HVAC or electrical wiring, if they’re damaged by fire
• Loss of rental income while the property is being restored and uninhabitable (often called "loss of use" or "fair rental value")
• In some cases, debris removal and associated cleanup costs

However, not all landlord insurance policies are created equal, and coverage limits, exclusions, and deductibles vary between carriers.

What’s Not Typically Covered?

Even when fire damage is covered, there are some scenarios that may be excluded or require additional endorsements. For example:

• Arson committed by the landlord or someone acting on their behalf is not covered
• Negligent maintenance, like knowingly ignoring fire hazards (e.g., faulty wiring), may result in denied claims
• Tenant belongings are not covered under landlord insurance—tenants should have renters insurance for that

How Fire Damage Impacts Short-Term Rentals

If you’re renting your property on platforms like Airbnb or VRBO, you’ll want to be extra sure that your landlord insurance policy includes coverage for short-term rental activity. Some traditional homeowners policies don’t cover fire damage during guest stays, which can leave you exposed.

Steadily specializes in policies built specifically for landlords of long-term and short-term rentals, so you’re covered whether you're leasing out a duplex or managing a vacation home.

How to Speed Up the Fire Damage Claims Process

In the event of a fire, landlords should take these steps to ensure a smoother claim:

1. Document the damage with photos and video
2. Contact your insurance provider immediately
3. Secure the property to prevent further loss (e.g., board up windows, cover roof damage)
4. Keep records of repair estimates, receipts, and any correspondence with tenants

Your landlord insurance provider can walk you through next steps, including arranging inspections and evaluating whether temporary housing is needed for tenants.

Why the Right Insurance Partner Matters

Fire damage doesn’t just cause physical destruction—it can derail rental income, stress landlord-tenant relationships, and result in expensive legal complications. The right landlord insurance policy not only helps you recover financially, but also gives you peace of mind.

Protect Your Property From Fire Risks

Whether you're leasing a home for long-term tenants or listing it on Airbnb, having fire coverage through landlord insurance isn’t optional—it’s essential.

Get a free quote and see how Steadily can protect your rental today.