North Dakota has roughly ~110,000 renter-occupied units. Average DP-3 landlord premium runs $950/yr — about 25–30% above a comparable homeowners policy due to higher liability and vacancy risk. Market profile: Small rental market; Fargo, Bismarck, and the oil-boom Williston Basin area are primary markets. Short-term rental climate: Very limited STR activity; primarily oil-worker accommodation in Williston; Fargo has minimal STR regulation.
Avg DP-3 Premium
$950/yr
Annual landlord/rental cost
Rental Units
~110,000 renter-occupied units
Renter-occupied housing
STR Climate
Very limited STR activity; primarily oil-worker accommodation in Williston; Fargo has minimal STR regulation
Very limited STR activity; primarily oil-worker accommodation in Williston; Fargo has minimal STR regulation
| Topic | Detail | Notes |
|---|---|---|
| Market profile | Small rental market; Fargo, Bismarck, and the oil-boom Williston Basin area are primary markets | Drives coverage form selection |
| Top landlord carriers | State Farm, Nodak Mutual, Farmers, Allstate, Farm Bureau | Specialized DP-3 underwriting |
| Short-term rental environment | Very limited STR activity; primarily oil-worker accommodation in Williston; Fargo has minimal STR regulation | Airbnb-specific coverage needed |
| Notable state law | North Dakota's landlord-tenant law is landlord-friendly; no statewide rent control; evictions proceed quickly | Affects landlord obligations & coverage |
DP-3 (Dwelling Fire) is the standard landlord policy form, covering the structure on an open-perils basis. Landlords also need liability coverage (often $300K–$1M) and Loss of Rents (typically 12 months). Standard homeowners policies do NOT cover rental properties.
North Dakota offers the lowest landlord insurance premiums in the nation by most metrics, a function of its low property values, low litigation frequency, limited catastrophe exposure outside of severe winter weather and occasional flooding, and a largely rural character. The rental market centers on Fargo (the state's largest city), Bismarck (the capital), Grand Forks (University of North Dakota), and the cyclical oil-boom town of Williston in the Bakken formation. Williston has historically seen wild rent swings — from boom periods where oil workers paid $3,000+/month for basic apartments to bust periods with significant vacancy. The state's extremely cold winters are the primary hazard driving claims.
North Dakota landlords should select DP-3 open-perils coverage and ensure pipe freeze, ice dam, and heating system failure are covered without sub-limits — these are the most frequent claims in the state's extreme winter climate. Williston landlords serving the oil industry workforce should recognize the cyclical nature of demand and carry loss-of-rents coverage as a hedge against oil price-driven vacancy. Fargo sits in an area with periodic Red River flooding risk; flood insurance may be appropriate for properties in flood-prone areas. The STR market in North Dakota is minimal; standard DP-3 policies are appropriate for virtually all North Dakota rental situations without STR endorsement unless property is specifically listed for transient use.
A DP-3 dwelling fire policy is the standard landlord form. Unlike an HO-3, it covers the building structure and landlord-owned contents (appliances, lawn equipment) — not the tenant's personal belongings. Tenants must carry their own renters insurance. DP-3 also includes loss of rents coverage (typically 12 months) if a covered loss makes the unit uninhabitable.
Standard DP-3 policies often exclude or limit short-term rental (Airbnb/VRBO) use. Most landlord carriers either require an endorsement, a separate STR policy, or a commercial dwelling policy. Airbnb's "AirCover" host protection is NOT a substitute for your own policy — it has many exclusions and lower limits.
North Dakota's landlord-tenant law is landlord-friendly; no statewide rent control; evictions proceed quickly
💡 North Dakota Pro Tip
North Dakota is consistently among the nation's cheapest states for landlord insurance. Fargo and Bismarck single-family rentals typically cost $700–$1,200/year for a DP-3 policy. Williston oil-worker accommodations run similarly. North Dakota's low property values, sparse litigation, and limited carrier competition all contribute to competitive pricing.
No — standard landlord policies exclude transient-occupancy rentals even in North Dakota. The STR market here is very small, but if you operate a short-term corporate accommodation or Airbnb listing in Fargo or Bismarck, you need a commercial or STR endorsement. Williston's oil-worker housing often operates under corporate lease arrangements rather than STR platforms.
North Dakota has no state requirement for landlord insurance. Mortgage lenders require coverage. Given North Dakota's affordable premiums and severe winter climate, securing comprehensive DP-3 coverage is an excellent value proposition for every North Dakota investment property.
Rental unit counts from US Census American Community Survey; premium averages from 2026 carrier rate filings for North Dakota. Verify your specific property's coverage with a licensed agent.
Sarah Mitchell
Editorial Lead, Property & Casualty
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed May 2026
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This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.