Landlord Insurance vs. Homeowners Insurance

​In specific disasters, homeowners insurance safeguards your residence and personal property. You and your family may also be shielded from liability claims with it. In comparison, landowner insurance aims to safeguard your income and the insured property in the event of damage brought on by tenants, certain natural disasters, or liability claims.

There is a good reason why landlord insurance is more expensive than homeowners insurance. Renting out your home to others comes with a lot of special dangers. Understanding the distinction between landlord and homeowners insurance will help ensure you have the coverage you require to prevent unforeseen out-of-pocket costs while renting out your property.

A Comparison of Landlord And Homeowners Policies
Here are some points that can help you further understand the differences between landlord and homeowners insurance.

Coverage for Personal Property
While many possessions, including computers, furniture, and clothing, may be covered by homeowners insurance, landlord insurance may only cover items required to maintain the rental property. 

So, it's likely that landlord insurance won't offer protection if you leave behind personal belongings that aren't needed to maintain the rental property. However, it might assist in covering equipment that you keep on-site to help maintain the property, like a snowblower or a lawnmower.

Liability Coverage
Typically, landlord insurance simply offers liability protection for the rented space. The liability insurance on your landlord policy may help cover the resulting medical or legal costs if a tenant is injured in the rental property you are renting and is held legally liable. 

Yet, regardless of whether the event takes place at your house or not, you and any family members who live with you may be covered by the liability portion of homeowners insurance.

Homeowners Insurance versus Landlord Insurance: Cost Comparison
Landowner insurance is more expensive than homeowners insurance because it offers specialized protections against the unique hazards of renting out your property.

The safeguards provided by landlord insurance may make it a wise investment. For example, if the rental home is temporarily unusable due to repairs following a kitchen fire, rental compensation will often help prevent you from losing money. 

Landlord insurance can cover your legal costs and any covered damages if you are held responsible for a tenant's or their visitor's injuries while they are on your property.

Do You Require Homeowner's Insurance or Landlord Insurance?
Not having the appropriate coverage could be expensive since you might be liable for any resulting medical costs, legal costs, or property damages. Knowing what you wish to do in your building can help you decide when choosing your insurance.

At Arnold Insurance Agency, we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (318) 965-5953 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!