A common mistake made by landlords is not having the proper insurance to cover the rental property. The two types of insurance commonly used to insure a rental property are homeowner's insurance and landlord insurance. Although both policies provide coverage for the home, a landlord policy provides additional benefits not available from a homeowner's policy.

Dwelling Coverage

    • Homeowner's insurance policies and landlord insurance policies both provide coverage if a home sustains damage. However, a landlord's insurance policy covers some losses that a homeowner's insurance policy does not. For instance, many homeowner's insurance policies exclude damage from vandalism if the home was vacant for more than 30 days. Most landlord insurance polices do not contain this coverage exclusion. In addition, homeowner's insurance polices do not cover damages intentionally caused by a resident of the home, even if the resident is a tenant. Landlord policies provide coverage for damages intentionally caused by tenants.

    Personal Property Coverage

    • The personal property coverage of a homeowner's or landlord insurance policy provides coverage for items that are not permanently attached to your home. When you rent a home to a tenant, you may leave items such as appliances, yard equipment and even furniture for the tenant to use. Many standard homeowner's insurance policies only cover the theft or damage to your personal property if you reside in the home when the loss occurs. However, a landlord insurance policy usually covers the owner's personal property left in the home as long as the property was for the use of the tenant or maintenance of the property.

    Loss of Use

    • If your home becomes uninhabitable due to a covered loss, the loss of use coverage of a homeowner's insurance policy provides compensation for you to rent another home during the repairs of your home. However, most homeowner's insurance policies do not provide this coverage if the home is not your primary residence. If you have a landlord's insurance policy, you may have coverage for the loss of rental income you incur if your tenant has to move due to the home becoming uninhabitable.

    Other Coverages

    • Landlord's insurance polices provide other benefits not available under most homeowner's insurance policies. If you have to evict a tenant from your home, many landlord policies provide compensation for some of the legal expenses you incur. A homeowner's insurance policy usually only provides liability coverage if you cause damage to someone's property or cause bodily injury. Landlord policies typically include coverage for accusations such as wrongful eviction.

  1. ​Article: http://www.ehow.com/info_8171388_landlords-insurance-vs-homeowners-insurance.html
Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012

View Mobile Version