Thompson Insurance Agency

Landlord Insurance
in Tennessee
and Mississippi

Rental property investors in Shelby County and DeSoto County need more than a standard homeowners policy. A dedicated landlord policy protects your structure, your rental income, and your liability exposure — whether you own one property or a growing portfolio.

What Landlord Insurance Actually Does

A landlord insurance policy — also called a dwelling fire policy or DP-3 — is the correct coverage form for residential rental properties. It is specifically designed for properties you own but do not occupy as your primary residence. Using a standard homeowners policy on a rental property creates a material coverage gap: if a claim arises and the insurer discovers the property was rented, the claim can be denied and the policy cancelled.

Landlord coverage addresses three core exposures: the physical structure and other improvements on the property, loss of rental income if a covered loss makes the property temporarily uninhabitable, and premises liability if a tenant or visitor is injured on the property and files a claim against you as the owner.

The Shelby County and DeSoto County Rental Market. The Memphis metropolitan area rental market spans two states and multiple growing communities. Germantown, Collierville, and Bartlett in Shelby County, Tennessee remain consistently in-demand rental markets with relatively high rent levels. In DeSoto County, Mississippi — particularly Southaven, Olive Branch, Hernando, and Horn Lake — rental demand has increased substantially as the region has grown. Investors in both markets should ensure their fair rental value coverage limits reflect current market rents, which have risen meaningfully in recent years. An annual coverage review is part of what we do for every landlord client.

When Landlord Coverage Is Required

Any owner of a residential rental property — whether a single-family home, duplex, or small multi-family — needs a landlord policy rather than a homeowners policy.

Single-Family Rental Owners

A home rented to a tenant requires a landlord policy from the first day it is occupied by someone other than the owner. This includes properties transitioned from owner-occupancy to rental, vacation homes rented seasonally, and investment properties purchased specifically to lease.

Duplexes and Small Multi-Family

Duplexes, triplexes, and fourplexes generally qualify for residential landlord policies. Properties with five or more units typically require commercial property insurance. We review the appropriate coverage form for your specific property type and portfolio structure.

Real Estate Investors in the Mid-South

Investors building portfolios in Shelby County or DeSoto County rental markets often have multiple properties with varying coverage needs. We work with portfolio landlords to ensure each property has the right policy form, adequate limits, and proper liability structure — including umbrella coverage above the underlying policies.

Accidental Landlords

Homeowners who relocate, inherit a property, or decide to rent rather than sell often transition to landlord status unexpectedly. Converting from a homeowners to a landlord policy promptly is essential to maintain coverage. We handle this transition for clients regularly.

Core Landlord Coverage Components

Dwelling and Structure Coverage

Covers the rental property's structure — walls, roof, framing, built-in systems, and attached improvements — against fire, storm, vandalism, and other covered perils. Coverage should reflect the current replacement cost to rebuild, not the property's market or assessed value.

Fair Rental Value / Loss of Rents

If a covered loss makes the rental property uninhabitable, this coverage replaces the rental income you would have received during the repair period. For investors in the growing DeSoto County and Shelby County markets, where rental income is a meaningful part of financial planning, this coverage is essential.

Premises Liability

Covers you as the property owner if a tenant or visitor is injured on the premises and pursues a liability claim. Standard limits begin at $100,000; we typically recommend $300,000 or higher paired with a personal umbrella policy for full protection of your assets.

Other Structures and Optional Coverages

Detached garages, fences, sheds, and other structures on the property can be covered under other structures coverage. Optional endorsements include building code upgrade coverage (for older properties), equipment breakdown, and contents coverage for furnished rentals.

What Landlord Policies Typically Exclude

Landlord Insurance FAQ

Landlord insurance (also called a dwelling fire policy or DP-3) is designed for properties you own but do not occupy as your primary residence. Homeowners policies are for owner-occupied homes and exclude rental activity. Once you place a tenant in a property, a landlord policy is the correct form — using a homeowners policy on a rental property creates a coverage gap that can leave a claim denied.
No. Standard homeowners policies are for owner-occupied residences. Renting out a property without converting to a landlord policy — even temporarily — can result in claim denial. If you rent out a room, a second property, or a vacation home, contact us to ensure you have the right policy form in place.
A landlord policy typically covers the dwelling structure, other structures on the property, fair rental value loss (lost rental income if the property is uninhabitable after a covered loss), and premises liability if a tenant or visitor is injured on the property. Contents coverage is not included unless you provide furnished rentals.
Yes — fair rental value or loss of rents coverage is typically included in a landlord policy. If a covered loss makes the property uninhabitable, this coverage replaces the rental income you would have received during the repair period. It is one of the most important components for real estate investors.
Yes. Landlord liability exposure is real — a tenant injury, slip-and-fall, or premises liability claim can quickly exceed standard policy limits. An umbrella policy provides an additional $1 million or more above the underlying landlord liability, protecting your investment portfolio and personal assets.
The Shelby County and DeSoto County rental markets are active and growing, particularly in communities like Southaven, Olive Branch, and Germantown. Higher demand means higher rental values — which means your fair rental value coverage limits should reflect current market rents. We recommend reviewing these limits at every annual renewal.
A DP-3 is the most comprehensive form of dwelling fire policy available for rental properties. It provides open-perils coverage on the dwelling and named-perils coverage for other structures. Most landlords with quality rental properties in Shelby or DeSoto County benefit from DP-3 coverage rather than the more limited DP-1 or DP-2 forms.
Accidental tenant damage is generally covered if it qualifies as a covered peril. Intentional damage by a tenant is typically excluded from property coverage but may be addressed through a malicious damage endorsement, which some carriers offer. Security deposits are your first line of defense against intentional tenant damage — coverage is a supplementary backstop.

Ready to Get Covered?

Let's build the right policy for your situation. Start online or talk to a real advisor who knows the Mid-South market.