The Difference Between Homeowners and Landlord Insurance

Residential properties represent valuable but potentially risky investments. Whether you live in a home you own or maintain ownership for the purposes of renting to tenants, you must account for various risks and exposures that could impact your property and inflict financial losses. However, while insurance can be an essential precaution for all homeowners, how you use your property may impact whether traditional homeowners or landlord insurance is suitable.

What Is Homeowners Insurance? 

Although landlords who rent out their homes are also technically homeowners, homeowners insurance typically refers to coverage intended for those who live in their own residences. Also known as home insurance, coverage can offer multifaceted financial protection for individuals and families. These policies often entail the following features:

• Dwelling and other structures coverage may assist with damage sustained by the dwelling, as well as outlying structures, such as garages and sheds.

• Contents coverage may help policyholders replace, restore or repair their belongings.

• Liability coverage may offset third-party losses for which insureds are at fault, such as guests’ bodily injuries or neighbors’ property damage.

• Additional living expenses coverage may compensate residents if their home becomes temporarily uninhabitable, such as by paying for hotel stays and restaurant meals.

What Is Landlord Insurance?

Also known as rental property insurance, these policies can offer specialized coverage for those who rent out homes to tenants. Whether considering a house, apartment or condo, the right landlord insurance is an essential investment and may include the following coverages:

• Structures coverage may financially protect the exterior of the building and common areas, although tenants are typically responsible for insuring their own belongings.

• Landlord liability coverage can cover incidents in which tenants, guests, passersby or other third parties suffer losses for which the property owner is at fault.

• Loss-of-use coverage may help landlords recoup lost income if a property becomes uninhabitable and they are, therefore, unable to collect rent.

• Landlord personal property coverage can assist with losses involving items a landlord may leave at their rental property, such as maintenance equipment and tools.

Get the Right Coverage

At Ranch and Coast Insurance Services, we can help you determine if a homeowners or landlord insurance policy will be appropriate for your situation. Contact us today to explore coverage options or 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.