Are you considering renting out your first property? If so, you are probably starting to go through the list of things you need to rent your property. You may be thinking I already have homeowners insurance; that box is checked. While you may have personal homeowner’s insurance, when you begin the process of renting your property, you need to check another box: landlord insurance. There are major differences between landlord insurance and homeowners insurance; join us as we decipher the differences.

Difference Between Landlord Insurance and Homeowners Insurance

Landlord insurance and homeowner insurance are both policies that cover your home, but they differ in several areas. Let’s start with their definitions.

Landlord Insurance: A policy that protects the home you rent and provides liability coverage. 

Homeowner Insurance: A policy that ensures your home’s structure and personal belongings in the case of a destructive event. 

Let’s dive into the similarities and differences between the two different policies.

Similarities

1. Liability Coverage: Both landlord and homeowner insurance policies have liability coverage. 
2. Structural Coverage: Both landlord and homeowner insurance cover the cost of repairing damages.

Differences

1. Personal Property Coverage: Homeowners insurance provides coverage for loss/damage of personal property. Landlord insurance does not provide coverage for personal property. Renters need to have a rental insurance policy to protect their personal property. 
2. Loss of Use vs. Loss of Rent Coverage: When a homeowner is unable to live in their home due to extensive damages, a homeowner policy will cover temporary living expenses. If a rental has extensive damages, a landlord policy can cover the loss of rent while the rental is being fixed.
3. Coverage As A Whole: The biggest difference in coverage is that when renting out your home, your homeowner’s insurance will not cover your home. You must have a landlord insurance policy to have liability, structural, loss of rent, etc.

Rest Assured with Ferguson Property Management

Once you have your landlord insurance policy, you are one step closer to being a landlord.  Ferguson Property Management is here for all landlords who need that extra helping hand in renting out their property. When you partner with us, we take care of all your rental needs allowing you to lean back and enjoy passive income. 

Take the first step into easy property management.
Contact us today.