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Everything You Need to Know about Landlord Insurance & Renters Insurance

by Emily Koelsch
Landlord Vs Tenant Insurance

Everything You Need to Know about Landlord Insurance & Renters Insurance

The difference between Landlord Insurance and Renters Insurance is a common source of confusion. We get frequent questions about what insurance policies are needed for rental properties.

To help with this issue, here’s an overview of the difference between Landlord Insurance and Renters Insurance and some tips for insuring rental properties. 

What Is Landlord Insurance 

Landlord Insurance is an insurance policy held by property owners who don’t live in their property. Homeowners insurance covers owner-occupied properties, but usually doesn’t cover rental properties. Instead, property owners need a Landlord Insurance policy to protect their rental units. 

A typical Landlord Insurance policy includes: 

  • Dwelling Coverage, which covers damage to the property or structure itself. 
  • Personal Property Coverage to protect any personal property that a Landlord has in a rental unit – for example, if the unit is furnished. 
  • Loss of use coverage to compensate Landlords for the loss of rental income if the property is uninhabitable. 
  • Liability Protection to protect Landlords if they’re found liable for injury to a Tenant or guest. 

It’s helpful to talk with your insurance agent to discuss the specifics of your policy. Typically, Landlord Insurance is about 25% more expensive than homeowners insurance. That said, it does offer broader coverage than a typical homeowners insurance policy. 

It’s important to note that Landlord Insurance does not cover Tenants’ personal property. Landlords and property managers should always communicate this to Tenants before they move into a rental unit. 

Landlord Insurance generally does not cover damage caused by floods or earthquakes. If you live in any area at risk of natural perils, you should ask your agent about the specifics of your policy and whether you need additional coverage.

States don’t require Landlord Insurance, but most lenders require property owners to have it. Regardless, we always encourage investors to have Landlord Insurance. You have a lot invested in your rental units, and it’s important to ensure they’re protected. 

What Is Renters Insurance? 

Renters Insurance is for Tenants and covers their personal property. It does not cover the dwelling or any of the Landlord’s property. It’s intended to protect the personal belongings of Tenants in the event of a fire, flood, burglary, or other loss. 

A typical Renters Insurance Policy covers: 

  • Tenants’ personal property after a covered loss – for example, kitchen fire, hail, theft, or windstorm. 
  • Temporary living expenses if the Tenant is forced to move out because of a covered loss. 
  • Personal liability and expenses if a Tenant is responsible for someone being injured on the property. 

Tenants with particularly valuable personal property – for example, jewelry, musical instruments, or art – should ask their insurance agent about extra coverage to protect these items. 

Renters Insurance policies usually don’t cover things like flooding, earthquakes, or sinkholes. Nor do they cover the personal property of a Tenant’s roommate. 

Many Landlords and property managers require Tenants to get renters insurance as a term of Lease Agreement. Whether it’s required or not, it’s always a good idea for Tenants to have renters insurance. Your belongings are worth more than you might think, and renters insurance is an affordable way to ensure you’re protected. 

Visit ezLandlordForms.com

For more real estate investing tips and tools, including a free Renters Insurance Quote, visit ezLandlordForms.com. We can help you screen Tenants and create a Lease, while also making the Leasing process as seamless as possible for your Tenants. Create a free account or get a free Renters Insurance quote today.

 


Emily Koelsch, ezLandlordForms Contributing Writer

Emily Koelsch WriterEmily Koelsch is a freelance writer and blogger, who primarily writes about business, real estate, and technology.

 


 

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