Landlord Insurance vs. Homeowner’s Insurance

Are you considering renting out your property? Before handing over the keys, it's crucial to understand the insurance options available to protect your investment. Let's explore the key differences between homeowner’s insurance and landlord insurance:

Who's Covered?

• Homeowner’s insurance: Protects you, your family, and permanent residents of the property.
• Landlord insurance: Covers the property itself, including appliances and fixtures, as well as your liability as the owner. However, tenants’ possessions are not covered under your policy.

What's Covered?

• Homeowner’s insurance: Typically covers damage from storms, fire, theft, and other specified perils. It may also include personal property coverage.
• Landlord insurance: Similar to homeowner’s insurance but includes additional coverage such as loss of rent, liability for tenant-related incidents, and vandalism.

Cost Considerations:

• Homeowner’s insurance: Generally, less expensive due to lower risk.
• Landlord insurance: Typically, more expensive, about 25% more than homeowner’s insurance, due to higher risks associated with rentals.

Choosing the Right Policy: Using homeowner’s insurance for a rental property is not recommended. Inform your insurer when renting out your property and switch to landlord insurance to avoid policy cancellation or financial vulnerability.

When renting out your property, it's essential to find the right insurance coverage to protect your investment and ensure peace of mind. For more information on navigating insurance options, visit our blog today: Blog - Orion180

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