34 Days of Homeowners Insurance
Day 021 | Comparing Landlord Insurance to Homeowners
Are you renting your former home?
Or maybe you’re a seasoned real estate investor.
If you’re renting a house to tenants, there are a few coverages in your policy that will be different from your homeowners policy.
Of course you would be insuring the home itself and any outbuildings if so desired.
There are few coverages you should be aware of that are different when comparing landlord insurance to homeowners insurance.
Do you own any personal belongings in your rental? Maybe appliances? Or do you fully furnish your property? This may not be a big deal to some landlords, but for others, this may be important.
Whether it’s your tenant or a visitor that’s gets hurt due to your negligence, liability will pay for medical costs, legal fees, or court judgements.
Liability coverage on a rental property will be for the premise only. Meaning coverage is for that specific property.
Know, this is different from your homeowners liability. Your homeowners liability is Personal Liability. It follows you anywhere in the world if your at-fault for causing injury or damage to a third-party.
Loss of Use
If your rental property suffers a severe damage due to a covered cause of loss and becomes uninhabitable, Loss of Use will provide you with lost rental income.
A Couple of Things to Consider
A Liability Umbrella. Coverage limits start at $1,000,000. Should you exhaust the liability limits on your underlying rental property or properties, a liability umbrella would provide you with an additional layer of liability.
Lastly, remember, your policy as a landlord does not provide any coverage for your tenants belongings or their liability. Your tenants should really have their own Renters Insurance policy.