Landlord Insurance: 1‑4 Units vs. 5+ Units
This is one of the most common points of confusion for property owners, and it matters because getting it wrong can mean a claim gets denied. The dividing line is straightforward once you know it: unit count.
1-4 units: personal landlord policy
If you own 1 to 4 residential rental units, that's written on a personal landlord policy, see our Landlord Insurance page. This covers the dwelling, lost rent, and liability at a scale appropriate for a smaller portfolio.
5+ units: commercial landlord coverage
At 5 or more residential units, apartments, condos, townhomes, or a mixed-use residential building, you move into commercial territory, what the insurance industry often calls habitational coverage. This isn't just a bigger version of the same policy, it's a genuinely different form, usually including ordinance/law coverage and often requiring a separate umbrella layer. See our Landlord (5+ Units) page.
What if I'm right at the line, or growing?
If you're about to cross from 4 to 5 units, or your portfolio spans both sides of the threshold across multiple properties, talk to your advisor before you close on the next purchase, not after. Getting the coverage type wrong at the point of a claim is a real, avoidable risk.