What’s The Difference Between Renters Insurance And Landlord Insurance?

Many people need clarification about the difference between renters insurance and landlord insurance. It may sound simple, but they differ on which type of coverage kicks in across different scenarios. When you turn a house into a rental property, think of the kind of insurance that helps protect your place. Read on to learn about the difference between renters’ and landlord insurance.

What is landlord insurance?

Landlord insurance is a policy taken out by the landlord to cover the property itself. If the property suffers damages from natural disasters or a fire, the landlord’s insurance policy will cover the damages. The policy could also cover some rental contents depending on the coverage type. 

A landlord insurance policy includes some type of liability coverage for the landlord. It would act to protect the landlord if they were to be sued because of an incident at the property. Without this type of protection, renters can sue landlords directly as an individual. Here are some of the coverage the landlord insurance includes:

• Dwelling
• Detached structures
• Liability protection
• Vandalism
• Burglary
• Rental property under construction
• Building codes

What is renter insurance?

A renters’ insurance policy covers specific aspects of a tenant’s living situation. Since tenants do not own the building, this insurance policy cannot cover the property. 

Instead, the renter’s insurance covers the cost of the payment you need to stay somewhere if the property is uninhabitable. The policies include liability and defense coverage, which protects you as an individual in case you get sued for an incident at the rental property. Renter insurance coverage includes:

• Contents
• Loss of use
• Personal liability
• Building additions
• Medical payments
• Credit card coverage

Landlord insurance vs. renter insurance

Landlord and renter insurance differ significantly. To give you an idea, here are the main difference between these two types of insurance:

1. Cost
   The cost of landlord and renters insurance differs depending on several factors. But generally, renters insurance is less expensive because it doesn’t completely cover the building compared to landlord insurance. 
2. Coverage
   In terms of coverage, it’s easy to remember the difference between the two. Renters insurance covers what’s inside the property, while landlord insurance covers the whole. 
3. Liability
   Liability coverage is often included in both renter and landlord’s policies, but the difference is not very extreme. Landlord insurance provides defense and liability coverage to landlords, while renters insurance provides the same range for tenants.

Protect your property and tenants with the right insurance

You need different insurance policies if you own a rental property or are a tenant. To protect yourself from any cost for damages, it’s essential to understand the difference between landlord and renter insurance. 

At Schneiderman Insurance Agency, we walk clients through their options and help them decide what fits. To learn more about how we can help you, please contact our agency at (818) 322-4744 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!