Landlord Insurance in Boulder: What You Should Know

In Boulder, the same foothills that attract hikers and homebuyers also bring a heightened risk of wildfires, with nearly 9 out of 10 buildings sitting in high-risk zones. Heavy snow from winter storms can strain roofs, summer hail can smash windows, and more than a quarter of properties face serious flood risk despite the area’s low rainfall. Since homes here cost well above the state average, even small repairs can add up fast. That’s why Boulder landlord insurance is the safety net every property owner needs. 

In this guide, you’ll learn what landlord insurance covers, how it differs from a homeowners policy, the types of plans available, and what factors influence landlord insurance costs. We’ll also walk you through the claims process and show you how the right coverage not only shields your investment but also helps create a safe, well-maintained home for tenants.

What Is Landlord Insurance?

Landlord insurance is a specialized type of property insurance designed specifically for owners who rent out residential property they don’t occupy themselves. It offers protections that a standard homeowners policy simply doesn’t, because it addresses the risks unique to rentals. A standard Boulder landlord insurance policy usually includes: 

• Dwelling coverage: Protects the structure itself from damage caused by covered events such as fire, hail, lightning, or wind.

• Liability protection: Covers legal and medical expenses if a tenant, visitor, or contractor is injured on your property due to something you’re responsible for (like icy steps).

• Loss of rental income coverage: Provides compensation for lost rent if tenants must move out temporarily because the property is uninhabitable due to a covered event.

Equally as important is knowing what landlord insurance in Boulder won’t cover. Common policy exclusions include: 

• Eviction costs
• Natural disasters (like floods and earthquakes)
• Pest infestations
• Damage from neglect
• Normal wear and tear
• Tenant belongings 
• Mold removal
• Intentional damage

Because these exclusions can leave you financially exposed, many landlords choose to add endorsements to their policy, which are optional coverages. Some of the most common add-ons to landlord insurance in Boulder include:

• Equipment breakdown coverage: Covers the cost to fix or replace heating, cooling, or electrical systems if they break unexpectedly. 

• Flood insurance: A smart choice for rentals close to Boulder Creek or in areas prone to pooling water, since standard landlord policies exclude flood damage from heavy rain, snowmelt, or runoff.

• Landlord’s personal property coverage: Protects furniture, appliances, or maintenance tools you own and keep at the property, so you’re not paying out-of-pocket to replace them after a covered loss.

• Vacancy endorsement: Extends your protection beyond the usual 30–90 day limit when a rental is unoccupied, giving you peace of mind if it takes longer than expected to find new tenants.

• Building ordinance or law coverage: Covers the extra cost of bringing a damaged property up to current code requirements after a loss

• Vandalism and theft protection: Adds a layer of security against intentional property damage or stolen items, which can be especially helpful for properties left vacant between leases.

Although there’s no state or federal law that requires you to have Boulder landlord insurance, most mortgage lenders make it a condition of financing, and many experienced landlords consider it non-negotiable. Without it, you’re relying entirely on your own resources to cover repairs, legal fees, or lost rental income when something goes wrong.

Comparing Landlord Insurance vs. Homeowners Insurance

Understanding landlord insurance vs. homeowners insurance is essential to making sure you’re not left uncovered. The two policies both apply to properties, but only provide coverage for claims under very specific circumstances. Here are the differences:

• Homeowners insurance is meant for owner-occupied properties. It covers the structure, your personal belongings, living expenses if you have to move out, and liability for personal guests.

• Boulder landlord insurance is intended for tenant-occupied homes only. It focuses on protecting the building, maintaining your rental income, and shielding you from tenant-related liabilities like court fees and medical bills from injuries. 

Landlord policies also allow for specialized endorsements that homeowners insurance doesn’t offer, such as vacancy coverage. Another major difference between landlord insurance vs. homeowners insurance is the cost. Since rentals come with more risks and potential for damage, landlord insurance costs tend to be 25% higher than the cost for a homeowners policy for the same property. Failure to have the right policy for each of your properties could result in denied claims and large out-of-pocket costs.

Different Types of Rental Property Coverage

When it comes to landlord insurance in Boulder, there are three different types you’ll normally choose from. These are known as dwelling policies, and you’ll see them written as DP1, DP2, and DP3. Since each one offers a different level of coverage at unique price points, it’s important to find a plan that’s not only in your budget but also covers everything you need to keep your property protected. 

DP1 Policies: Basic Coverage

A DP1 policy (Dwelling Fire Form 1) is the most basic form of landlord insurance in Boulder, and it’s generally the least expensive option. It only covers specifically “named perils,” such as fire, wind, hail, and lightning. If the cause of damage isn’t on that short list (usually nine total items), it won’t be covered. Claims under a DP1 policy are paid out at actual cash value (ACV), which factors in depreciation. That means you’ll receive less of a payout for older or worn parts of your property that get damaged, which may mean you’ll pay extra to replace it brand new. While this keeps landlord insurance costs low, it also exposes you to more risk. DP1 policies tend to work well for low-value properties or in situations where you’re able to handle the cost of damages yourself. 

DP2 Policies: Mid-Level Coverage

The DP2 policy builds on the basic DP1 coverage by adding a broader range of protections. In addition to covering all DP1 perils, it includes events like vandalism, certain types of water damage from plumbing issues, damage from falling objects, and collapse caused by heavy snow or ice. This type of policy pays claims on a replacement cost basis, so you receive the amount needed to fully repair or replace the damaged property without deductions for age or wear. For many mid-value Boulder rentals, DP2 provides a solid level of protection at a premium that’s still manageable for most budgets.

DP3 Policies: Special Coverage 

The DP3 policy is considered the most comprehensive form of Boulder landlord insurance. Instead of listing only the perils it covers, it works on an “open peril” basis, meaning everything is covered unless it’s specifically excluded in the policy. Like DP2, it pays on a replacement cost, ensuring you can rebuild or replace the damaged parts without having to subtract for depreciation costs. Because of its broad protection, DP3 is a popular choice for high-value properties, historic homes, or rentals in Boulder’s foothill neighborhoods where there are high replacement costs on top of weather extremes. While it comes with the highest landlord insurance costs, many property owners see it as essential to their peace of mind. 

Umbrella Insurance

An Umbrella insurance policy adds extra liability coverage beyond your standard Boulder landlord insurance limits, protecting you if a claim exceeds your base policy’s payout. In a high-value market like Boulder, where lawsuits can be costly, many landlords choose at least $1 million in umbrella coverage, which often costs just $383 per year on average. 

Limited Liability Company (LLC)

Holding your rental in a Limited Liability Company (LLC) separates your personal assets from your rental business, reducing personal liability in the event of a lawsuit. That means if you’re sued for something that happened at your rental property, the courts can’t come after your personal home, car, savings accounts, or other assets. While an LLC isn’t a substitute for landlord insurance in Boulder, having both gives you much more protection. 

Landlord Insurance Costs in Boulder

While landlords in Colorado pay an average of $1,608 a year in landlord insurance costs, Boulder’s market tends to run higher. The increased rates are largely due to the city’s high property values, combined with local risks like hailstorms, heavy snow, and the wildfire threat from the nearby foothills. Other factors that influence the cost include: 

• Policy type: Basic DP1 policies are the least expensive, but they offer limited protection. A comprehensive DP3 policy costs more but covers a much wider range of risks. 

• Claims history: If you’ve filed multiple claims in recent years, insurers may view you as a higher risk, which can lead to costlier premiums or reduced coverage options.

• Location: Properties near Boulder Creek, in wildfire-prone hillside areas, or in high-crime areas may carry higher premiums due to increased risk.

• Property condition: Homes with newer roofing, plumbing, and electrical systems may qualify for discounts, while older systems can increase your rate because they’re more likely to fail.

• Safety features: Smoke alarms, sprinkler systems, deadbolts, and monitored security systems can all help lower your premium by reducing the chance or severity of a claim.

• Replacement cost value: The higher it would cost to rebuild your property from the ground up, the more your insurance will cost. Boulder’s high construction costs and strict building codes often push this figure above the national average.

Given Boulder’s expensive housing market and various natural hazards, even a single severe storm can cause tens of thousands of dollars in damage. That’s why many property owners view Boulder landlord insurance as an essential cost of doing business rather than an optional expense.

How to File a Landlord Insurance Claim in Boulder

When something goes wrong at your Boulder rental, timing matters. Repairs here can get expensive quickly, and strict building codes can make the process even slower if you’re not prepared. Moving quickly and keeping organized can prevent hiccups along the way. Here’s how to get started: 

1. Review your policy first: Before you call the insurance company, look over your Boulder landlord insurance policy to see exactly what’s covered. That way, you’ll know upfront whether the damage is something they’ll pay for. 

2. Get photos and videos right away: Pull out your phone and take plenty of timestamped shots from different angles, inside and outside, both up close and from far away. 

3. Prevent further damage: Your insurer expects you to take simple steps to protect the property. That might mean covering a broken window, shutting off a leaking water line, or tarping a roof after a storm. Hang on to any receipts for these quick fixes, as you could be reimbursed. 

4. Notify your insurer immediately: The clock starts ticking when you report a loss. In Colorado, many companies aim to handle claims within 30 days for online filings or 45 days by mail, but that timeline depends on you, too. 

5. Submit all required documentation: This could include repair quotes from licensed Boulder contractors, receipts for emergency work, tenant statements, and your lease. The more complete your documents, the smoother the process tends to go. 

6. Prepare for the adjuster visit: An insurance adjuster will likely come to check the damage in person. Be flexible with scheduling, and if you can, be there to walk them through what happened.

7. Track every interaction: Write down who you spoke to, when, and what was said. Save emails, letters, and texts. If there’s ever a disagreement, this paper trail can help you out a lot. 

Once the claim is filed, be on the lookout for any updates and follow up if needed. The more proactive and organized you are, the faster you can get repairs underway and your rental back to generating income.

Final Thoughts: The Value of Boulder Landlord Insurance 

Owning rental property in Boulder is rewarding, but high property values, wildfire and flood risks, and unpredictable weather make it a high-stakes investment. Landlord insurance in Boulder acts as a cushion, ensuring you’re not left paying for repairs, legal fees, and medical bills out of pocket. 

Whether you choose a basic DP1 or a full DP3 policy, adding coverage for your property’s unique risks can make all the difference. If you’d rather focus on growing your portfolio while someone else handles the day-to-day challenges, partnering with a local property management team can be a game-changer. At Evernest, our team takes care of everything so your property stays profitable and your workload stays light. Contact us today and let’s make sure your property is set up for long-term success.