Landlords and private homeowners are both property owners who have similar investment and legal obligations. The key difference, of course, is that landlords rent out their properties to others while homeowners generally reside on the properties they own.
When it comes to insurance, a few crucial differences between landlords and property owners need to be taken into consideration. Here are just some of the differences between the insurance standards of landlords and homeowners.
Typical Coverage
Both homeowners and landlord insurance cover the physical structure of the property in question. Homeowners insurance covers personal belongings as well. Landlord insurance, however, also protects the owner from damage caused by third-party tenants.
Rental Income
Landlord insurance covers the loss of rental revenue from damage to the home and surrounding property. Homeowners residing in the insured house don’t generate income from rentals, so this coverage is unnecessary.
Personal Belongings
Homeowner insurance covers damage, theft, and loss of the owner’s personal belongings. Landlord insurance generally doesn’t cover these items since landlords generally don’t have their personal items in the rental unit, although some might include landlord-owned furniture.
Supplemental Coverage
Homeowners can get additional coverage for detached structures, landscaping, high-value items like jewelry, and other options. Landlord insurance can cover risks common to rental properties such as eviction expenses, legal fees in tenant disputes, loss of rental income from vacancy, and rent default.
Premiums
With a few exceptions, landlord insurance costs a little more than a standard homeowner policy. That’s because there are more risks associated with renting a property to a tenant that homeowners don’t have to worry about.
Find Out More About Landlord Insurance
Reliable Property Management provides comprehensive landlord insurance for property owners in the greater Baltimore area. To get a fair quote on insurance for your rental property, call us at (443) 869-3799 or make a request on our rental properties page.