The Difference Between Home Insurance and Landlord Insurance

As a homeowner, you’ve invested significant capital into a tangible asset, potentially putting yourself at great financial risk. Even the most diligent and cautious property owners may not be able to prevent every accident or shield their homes from circumstances beyond their control. That’s why appropriate insurance is essential. However, how you utilize a home plays a critical role in determining the right kind of coverage.

How Does Home Insurance Work?

Home insurance is an essential financial safeguard for many homeowners, as it can financially protect against many common incidents and situations. Standard policies often include the following:

• Structures coverage can help pay to repair damage to a home, including outlying structures like garages and sheds.
• Personal property coverage can cover a homeowner’s belongings, including for incidents occurring outside the home.
• Personal liability coverage may help address incidents in which other parties, such as guests and neighbors, accrue losses for which a policyholder is at fault.
• Loss-of-use coverage can assist with additional living expenses, including hotel stays and restaurant meals, if a homeowner must temporarily vacate the premises.

What Does Landlord Insurance Cover?

A landlord insurance policy may be available for owners of individual homes, as well as larger structures, such as apartment buildings. Specifically, coverage may entail the following financial protections:

• Building coverage can financially protect a rental property’s structural elements.
• Landlord property coverage may help pay for losses involving items an owner leaves on-site, such as common area furniture and maintenance equipment.
• Landlord liability coverage can insulate policyholders from financial fallout if they’re responsible for others’ losses, such as if tenants are injured due to poor property upkeep.
• Lost income coverage may help landlords recoup revenue they would have earned if a covered incident makes them incapable of renting out a property.

Why Might I Need Each?

While you may have noticed that home insurance and landlord insurance policies may have certain similarities, their scope and coverage include several crucial distinctions. Generally, if you’re using a home you own as your primary residence, home insurance is the right selection. While not typically required by law, mortgage lenders may mandate coverage.

Meanwhile, landlord insurance is critical if you plan to rent out a home you own. Standard home insurance policies typically exclude situations in which someone else is the primary occupant of your home.

We’re Here to Help

Contact R.M. Price Insurance Agency today to learn more about coverage options and compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.