Household & Real Estate

Homeowners vs Landlord Insurance: What Are the Differences?

Did you know that according to the latest data, there are more than 132 million homes in the United States? 

Whether you’re a first-time buyer or an existing homeowner, you know that owning a property comes with responsibilities and financial burdens to deal with. Fortunately, there are two insurance policies created to help you deal with some of the problems.

In this article, we’ll unpack the differences between homeowners vs landlord insurance policies. We’ll provide some guidance on which one you should get and why. Let’s dive in!

What Is Homeowners Insurance?

Homeowners insurance is a type of policy that provides financial protection against losses. These losses can arise from property damage and personal liability due to living in a home. 

This policy is available to renters, owners, and landlords. It covers the physical structure of a home and the possessions located inside it.

The coverage can also apply to a variety of situations. This includes damages caused by fires and lightning and windstorms. And it can also have liability for personal injury or property damage caused by the insured homeowner.

However, homeowners insurance does not cover flood or earthquake damage. Homeowners have to buy separate policies often can for those risks. 

What Is Landlord Insurance?

Landlord insurance is a type of policy designed to protect a landlord’s interests and rental property. It provides coverage in case of damages to the property. It can also include any associated loss of rental income due to a lack of rental payments.

A landlord insurance policy can also protect the landlord against legal disputes related to the property. This could include claims of discrimination or retaliatory eviction. It also generally covers damage caused by the tenant’s belongings or activities while they occupy the rental property. 

Homeowners vs Landlord Insurance: The Differences

Homeowners insurance is for homeowners and covers a wide range of issues associated with the house. This includes its structure, as well as personal belongings and liability-related matters. 

The insurance also includes coverage for additional living expenses, such as hotel costs. But, this is only in the event of an insured loss.

Landlord insurance, however, is for landlords who rent out their property to tenants. It covers much of what homeowners insurance covers. But it also generally focuses more on the building itself and liabilities related to tenants and their activities.

Landlord insurance also allows for coverage of rental income interruption. It can also cover damage caused by tenants or guests and legal defense in case of tenant lawsuits. 

Get an Insurance Policy for Your Home Now

Homeowners vs landlord insurance are different and serve separate purposes. Landlord insurance provides liability protection and covers lost rental income. Homeowners’ insurance covers the actual structure of the house and its contents.

You just have to make sure you assess your needs to determine which type of insurance is best for your situation. Talk to a local trusted insurer today to get started!

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