# Landlord Insurance Eagan, MN | Block Agency > Minnesota landlord insurance (DP-3) for rental homes, condos and duplexes. Loss of rents, liability and Eagan rental tips from a local Farmers® agency. Source: https://blockagencyinc.com/landlord-insurance [Home](https://blockagencyinc.com/) / Landlord Insurance # Minnesota Landlord Insurance: It isn't a house. It's income. A rental needs a policy built for the building, the liability, and the rent. Homeowners insurance on a tenant-occupied property is a claim waiting to be denied. [Get My Free Landlord Quote](https://blockagencyinc.com/quote?type=landlord) [or call **(651) 252-6655**](tel:+16512526655) DP-3 The Policy A Rental Needs 12 Mo Common Loss Of Rents Limit 1–2% Common MN Wind/Hail Deductible 15 min To Start Your Quote The Quick Answer A Minnesota rental needs a **landlord policy, typically a DP-3 open-perils dwelling form**, not homeowners insurance. Filing a homeowners claim on a tenant-occupied property can be investigated and ** denied**. A landlord policy does three things a homeowners policy will not: cover the dwelling as a rental, cover ** landlord liability**, and replace ** lost rents** when a covered loss makes the unit unlivable. In Minnesota, watch the ** wind/hail deductible**: the Department of Commerce has warned that percentage deductibles of **1 to 2 percent or more of the insured value** are now common. Tenant belongings are never covered, so require ** renters insurance**. In Eagan, a ** city rental license** is required for single-unit and multi-unit rentals. If the private market says no, the ** Minnesota FAIR Plan** offers dwelling fire coverage as a last resort. ** Block Agency**, a Farmers Insurance® agency in Eagan, quotes rental property free at **[(651) 252-6655](tel:+16512526655)**. Right policy : DP-3 landlord, not homeowners Wind/hail deductible : Often 1 to 2% of insured value Never covered : Tenant belongings, unpaid rent Free quotes : [(651) 252-6655](tel:+16512526655) Minnesota Landlord Insurance, The Short Version ## The most expensive mistake is the quietest one. Wrong policy, right property. It happens like this. You bought the place, lived in it, insured it as a [home](https://blockagencyinc.com/home-insurance) or a [condo](https://blockagencyinc.com/condo-insurance). Then you moved, kept it, and rented it out. The policy renewed automatically every year, so nobody thought about it. Now a pipe bursts, you file a claim, and the adjuster asks who has been living here. **A homeowners policy is written for a home you occupy.** Once tenants live there, the insurer can investigate occupancy and deny the claim. Years of premiums, no coverage, and it is entirely avoidable with one phone call. If you are renting out a property that is still on a homeowners policy, stop reading and call us. That is the whole point of this page and everything below is detail. The right policy is a **landlord policy**, typically a dwelling fire ** DP-3** form, which insures the building on an open-perils basis. It usually costs somewhat more than homeowners coverage on the same house, and it does three jobs that a homeowners policy does not: it insures the building as a rental, it covers the ** liability** that comes with people living in a property you own, and it replaces the ** rent** when a covered loss puts the unit out of service. That last one is why this policy exists. Your mortgage does not care that the kitchen burned. Minnesota adds its own edge: hail. Many policies now carry a wind/hail deductible set as a percentage of the insured value, and 2 percent on a $400,000 rental is $8,000 out of pocket before the policy pays. On a rental, that is a business expense you want planned, not discovered. Block Agency is a local Farmers agency, and we can also shop additional carriers when Farmers isn't the right fit. The deductible is one of the first things we look at on a rental in this state. ## What a landlord policy covers. And what lands back on you. Three coverages do the real work: the **building**, the ** liability**, and the ** rent**. The exclusions are where landlords get surprised. Core Rebuild Cost ### Dwelling The structure, at what it costs to rebuild today rather than what the property would sell for. Take replacement cost over actual cash value where you can, and watch for roof coverage that pays depreciated value, a growing trend in Minnesota. A hailstorm that shreds a twenty-year-old roof should buy you a new roof, not a fraction of one. Core $500k+ ### Landlord Liability The broken stair rail, the slip on an icy walkway, the dog the tenant was not supposed to have. Covers defense costs as well as the judgment. Start at $500,000 and put an umbrella on top, because rental property attracts claims that owner-occupied homes do not. Core 12 Months ### Loss of Rent Replaces rental income while a covered loss makes the unit unlivable, often up to about twelve months of fair rental value. Match the limit to a realistic repair timeline, which after a big Minnesota hailstorm, when every roofer is booked, runs longer than you would like. Worth adding Civil Authority ### Civil Authority Responds when a government order blocks access to the property after a covered loss nearby, such as a fire next door or an evacuation, even before your own damage is tallied. Carries time limits and conditions. Read it before you need it. Worth adding Vacancy ### Vacancy Endorsement Most policies restrict coverage once a property sits empty past roughly 30 to 60 days, and vandalism and water damage are often the first things excluded. Turnover and renovations are normal. Tell us and we will keep the coverage intact. Worth adding Your Stuff ### Landlord Property The appliances, the washer and dryer, the furniture in a furnished unit, the snowblower and lawn equipment in the garage. It is your property, not the tenant's, and standard limits are thin. Worth sizing on purpose. Not covered Their Stuff ### Tenant Belongings Never covered, and it should not be. That is what [renters insurance](https://blockagencyinc.com/renters-insurance) is for. Require it in the lease, ask to be added as additional interest, and verify it at renewal. Not covered Bad Tenants ### Unpaid Rent & Evictions A tenant who stops paying is a legal problem, not a claim. Loss of rent responds to covered physical damage, not to a bad tenancy. Eviction costs and rent you never collected are not on the policy. Not covered Water ### Flood & Sewer Backup Flood is never part of a dwelling policy. It is a separate policy, and on a rental it protects both the building and the rent it produces. Sewer and drain backup is not flood and is not standard either; it is an endorsement. On a rental with a basement unit, ask about both. Your tenants' belongings need their own [contents flood policy](https://blockagencyinc.com/flood-insurance). ### Renting out a place that is still on a homeowners policy? It is the most common gap we find, and the most expensive one. Fixing it takes one call, and it is the difference between a paid claim and a denied one. [Fix My Coverage](https://blockagencyinc.com/quote?type=landlord) [Call (651) 252-6655](tel:+16512526655) The Minnesota Fine Print ## Licenses, deductibles, and a last resort. Know them before you need them. Three things specific to owning a rental here, and most landlords have not run the numbers on all of them. ### Eagan tip: your rental needs a city license Eagan adopted a rental licensing ordinance in March 2023. A license is required for **single-unit rentals**, meaning a house, townhome, or condo, and for ** multi-unit rentals**, with inspections on roughly a ** three-year cycle**. For 2026/27, the fees are **$165 a year for a single-unit rental** and **$210 per building plus $20 per unit for multi-unit**. Some exemptions apply, such as renting to qualifying relatives. Licensing is the city's lane, not ours, so confirm the details with the City of Eagan, and check the local rules if your rental is in another city. The insurance angle is simple: when the property is licensed as a rental, make sure the policy says rental too. ### The wind/hail deductible, rental edition Hail is Minnesota's big property risk. 2022 was the state's costliest storm year, with **$6.3 billion** in property damage, and a single hailstorm on August 11, 2023 topped **$1 billion**. The Minnesota Department of Commerce has warned that many policies now carry wind/hail deductibles of **1 to 2 percent or more of the insured value**. Under a 2024 state law, an insurer moving you to a percentage weather deductible must give **60 days' notice**, show a worked dollar example, and offer at least one flat-dollar option. On a rental, a deductible that large is a business expense. Plan for it, budget for it, or choose the flat-dollar option if the numbers favor it. ### When the private market says no Older roof, claims history, a long vacancy: sometimes a rental gets declined. The **Minnesota FAIR Plan**, created by state law in 1968, offers dwelling fire coverage for owners who have been cancelled, nonrenewed, or cannot get coverage in the private market. It is a last resort, not a first choice, and we would rather help you get back to a standard policy. But it exists, and it beats going without. ### What to do with this Send us the declarations page on every door you own. We will tell you whether the policy is actually a landlord form, what the loss of rents limit really buys at today's rents, where the wind/hail deductible sits, and whether flood and sewer backup coverage exist at all. About fifteen minutes per property, free, and better done in spring than after the first hailstorm. On lease language and tenant law, talk to a landlord-tenant attorney, because we are insurance people and that is not our lane. ### Does your loss of rents limit match what the unit actually rents for? It is a fifteen-minute read of your declarations page and it is free. Better to know in April than after the first hailstorm. [Check My Loss Of Rent](https://blockagencyinc.com/quote?type=landlord) [Call (651) 252-6655](tel:+16512526655) ## Seven ways to protect the return. Not just the building. A rental is a business, so the goal is not the cheapest premium. It is the best **after-tax cost of risk**, and those are different numbers. 1 ### Require renters insurance, then actually verify it Put a minimum liability limit in the lease, ask to be added as [additional interest](https://blockagencyinc.com/renters-insurance) so you are told when it lapses, and check at each renewal. A tenant with their own coverage means their loss goes to their carrier instead of becoming your liability claim. We are happy to quote your tenants directly. 2 ### Buy the umbrella. It is the cheapest thing on the page. Rental property attracts liability the way owner-occupied homes do not. An umbrella stacks $1 million or more across your rentals, your [home](https://blockagencyinc.com/home-insurance), and your auto, and it is often affordable relative to the protection it adds. 3 ### Take a real deductible, because you are a business You should not be filing small claims on a rental anyway: claims history follows the property and drives both price and whether carriers will write you at all. Set the deductible where it belongs and self-insure the small stuff on purpose. 4 ### Bundle the rentals with your own policies Multiple properties with one carrier, plus your home and auto, is where multi-policy discounts may be available. It also means one person can see your whole exposure instead of four people each seeing a slice of it. 5 ### Put the money in the roof Minnesota insurers price roofs hard, and more policies now pay roofs at depreciated value. State law requires insurers to give a premium discount for homes that meet the IBHS FORTIFIED roof standard, so ask whether it applies to your rental. A documented newer roof can also change which insurers will write the property. On a rental the roof does double duty: lower premium, fewer tenant disruptions. 6 ### Tell us when the use changes Long-term lease became a short-term rental. Tenant moved out and it is vacant for four months. You finished the basement and rented that too. Every one of those changes the policy, and every one is a denied claim if we hear about it after the fact instead of before. 7 ### Remember the premium is deductible Insurance on a rental is generally a deductible business expense, so the after-tax cost is lower than the invoice. That is worth remembering before you cut coverage to save a few dollars a month. Confirm the details with your CPA, since we do insurance and they do taxes. ## However you landlord. We write it. One condo, a duplex, the house you moved out of, the garage apartment out back. Each is a different policy conversation. [### The accidental landlord You moved and kept the house. The most common and most under-insured landlord in Minnesota, usually still sitting on a homeowners policy that will not respond.](https://blockagencyinc.com/quote) [### Basement units & house hacks Renting the lower level or a room in your own home changes your policy in ways a homeowners form was never meant to handle. Common in the Twin Cities, and constantly missed.](https://blockagencyinc.com/quote) [### Duplexes & small multi-family Two to four units, one policy, several times the liability surface. Where you live in the building changes the form, so tell us the arrangement.](https://blockagencyinc.com/quote) [### Short-term & Airbnb hosts Lake places and weekend rentals are a Minnesota tradition. Standard landlord forms often exclude stays under 30 days, and platform host protection is not a policy. There are real programs for this, and disclosing up front is the whole game.](https://blockagencyinc.com/quote) [### Multi-property owners Three doors or thirty. Bundling the schedule with one carrier plus a single umbrella over the whole portfolio is usually both cheaper and dramatically simpler to manage.](https://blockagencyinc.com/quote) [### Rentals near the water River towns, lake homes, a duplex near the bluff. The full plan, with dwelling, flood, and sewer backup, built as one, with loss of rents sized to what the unit actually earns.](https://blockagencyinc.com/quote) ### One door or a dozen, the review is free. Tell us what you own and how it is rented. We will tell you what the policy should be, what it costs, and what is currently exposed. [Get My Free Quote](https://blockagencyinc.com/quote?type=landlord) [Call (651) 252-6655](tel:+16512526655) ## Landlord insurance in Eagan. And across the Twin Cities metro. Rental property is priced ZIP by ZIP, and so is whether an insurer will write it at all. We serve Minnesota and western Wisconsin. Tell us where the door is. [Get Quote](https://blockagencyinc.com/quote) [Eagan](https://blockagencyinc.com/quote) [Burnsville](https://blockagencyinc.com/quote) [Apple Valley](https://blockagencyinc.com/quote) [Lakeville](https://blockagencyinc.com/quote) [Inver Grove Heights](https://blockagencyinc.com/quote) [Mendota Heights](https://blockagencyinc.com/quote) [Rosemount](https://blockagencyinc.com/quote) [Farmington](https://blockagencyinc.com/quote) [Savage](https://blockagencyinc.com/quote) [Prior Lake](https://blockagencyinc.com/quote) [Bloomington](https://blockagencyinc.com/quote) [Woodbury](https://blockagencyinc.com/quote) [Saint Paul](https://blockagencyinc.com/quote) [South St. Paul](https://blockagencyinc.com/quote) [Hastings](https://blockagencyinc.com/quote) [Hudson, WI](https://blockagencyinc.com/quote) [All of Minnesota & Wisconsin](https://blockagencyinc.com/quote) ## Minnesota landlord insurance questions. Straight answers. Can I use homeowners insurance on a rental property?+ No, and this is the most expensive quiet mistake in rental ownership. A homeowners policy is written for a home you occupy; once tenants live there, the insurer can investigate occupancy and deny the claim. A tenant-occupied property needs a landlord policy, typically a dwelling fire or DP-3 form. If your rental is still on a homeowners policy, fixing it takes one phone call. What does landlord insurance cover?+ A DP-3 is an open-perils dwelling form, and three coverages do the real work: the dwelling at rebuild cost, landlord liability for injuries and property damage claims arising from the rental, and loss of rents when a covered loss makes the unit unlivable, often up to about twelve months of fair rental value. Landlord-owned property like appliances gets its own limit. What it never covers: tenant belongings, unpaid rent from a bad tenancy, or eviction costs. How much does landlord insurance cost in Minnesota?+ Expect it to cost somewhat more than a homeowners policy on the same house, in exchange for coverage that actually responds on a rental. Roof age and condition, the wind/hail deductible you choose, claims history, and how the property is rented all move the number. The premium is generally a deductible business expense, so the after-tax cost is lower than the invoice. Confirm with your CPA. Do I need a rental license in Eagan?+ Yes. Under the rental licensing ordinance Eagan adopted in 2023, a license is required for **single-unit rentals** (a house, townhome, or condo) and for ** multi-unit rentals**, with inspections on roughly a three-year cycle. For 2026/27, fees are $165 a year for a single-unit rental and $210 per building plus $20 per unit for multi-unit. Some exemptions apply, such as renting to qualifying relatives. Licensing is handled by the city, so confirm current requirements with the City of Eagan. Then make sure your insurance reflects the rental use too. What is a wind/hail percentage deductible?+ Instead of a flat dollar amount, the deductible for wind and hail damage is a percentage of the property's insured value. The Minnesota Department of Commerce has warned that deductibles of 1 to 2 percent or more are now common: 2 percent on a $400,000 property is $8,000. Under a 2024 Minnesota law, an insurer moving you to a percentage deductible must give 60 days' notice with a dollar example and offer at least one flat-dollar option. On a rental, know the number before storm season. Are tenant belongings covered by my landlord policy?+ Never, and they should not be. That is what renters insurance is for. Require it in the lease with a minimum liability limit, ask to be added as additional interest so you are notified if it lapses, and verify at each renewal. A tenant with their own coverage means their loss goes to their insurer instead of becoming your liability claim. Does landlord insurance cover unpaid rent or evictions?+ No. A tenant who stops paying is a legal problem, not a claim. Loss of rents responds to covered physical damage that makes the unit unlivable, not to a bad tenancy. Eviction costs and rent you never collected are not on the policy; screening remains the better investment. What if my rental sits vacant between tenants?+ Tell your agent before it happens. Most policies restrict coverage once a property sits empty past roughly 30 to 60 days, and vandalism and water damage are often the first exclusions to bite. In a Minnesota winter, an empty house with the heat turned down is a frozen-pipe claim waiting to happen. Turnover and renovations are normal; a vacancy endorsement keeps the coverage intact through them. Do I need special coverage for an Airbnb or short-term rental?+ Yes. Standard landlord forms often exclude stays under 30 days, and platform host protection is not an insurance policy you control. Lake places and weekend rentals need a program built for that use. Disclosing the rental pattern up front is the whole game: a denied claim after the fact costs far more than the right policy would have. Do I need an LLC, an umbrella, or both for my rentals?+ The entity question belongs to your attorney and CPA. The insurance answer is that rental property attracts liability that owner-occupied homes do not, and an umbrella stacking $1 million or more across your rentals, home, and auto is usually one of the most cost-effective coverages you can buy. Make sure the policy names match how the property is actually owned. What if I can't find coverage for my rental?+ Older roof, claims history, a long vacancy: sometimes a rental gets declined. The **Minnesota FAIR Plan**, created by state law in 1968, offers dwelling fire coverage for owners who have been cancelled, nonrenewed, or cannot get coverage in the private market. It is a last resort, not a first choice, and we would rather help you get back to a standard policy. But it exists, and it beats going without. How much loss of rents coverage do I need?+ Match it to fair rental value over a realistic repair timeline. In Minnesota that timeline stretches after a big hailstorm, when contractors are booked across the metro, and in winter, when some exterior work has to wait. Twelve months of fair rental value is a common shape; underestimating the monthly figure or the timeline is the common mistake. We size it to your actual lease, not a default. Still have questions? [Call (651) 252-6655](tel:+16512526655). We will give you a straight answer. ## Cover the whole portfolio. [Get a landlord quote](https://blockagencyinc.com/quote?type=landlord) [Home insurance](https://blockagencyinc.com/home-insurance) [For your tenants](https://blockagencyinc.com/renters-insurance) [Call (651) 252-6655](tel:+16512526655) ## Protect the building, the liability, and the rent. Free, fast, and in plain English. Tell us about the property and how it is rented. We will build the policy around the investment. It takes about 15 minutes to get started. [Get My Free Landlord Quote](https://blockagencyinc.com/quote?type=landlord) [or call **(651) 252-6655**](tel:+16512526655) --- **Farmers Insurance - Block Agency** · 1121 Town Centre Drive, Suite 101, Eagan, MN 55123 · (651) 252-6655 · Mon–Fri 9:00 AM–5:00 PM; evenings by appointment Request a quote: https://blockagencyinc.com/quote-request (plain HTML form) or https://blockagencyinc.com/quote (guided).