Insurance for Rental Property

Generally, insurance providers consider renting out your home in order to generate income as a business activity, which will not be covered by a traditional homeowners policy. Landlord insurance covers similar risks to those that homeowners insurance covers, but there are still some key differences. Many landlord insurance policies are all-risk policies that cover all types of property damage — except for those excluded by the policy. Exclusions are often limited to preventable losses, such as neglect or intentional property damage, and risks tied to location, such as earthquake or flood coverage.

A helpful way to view the difference between homeowners insurance cost and landlord insurance cost is to think of your homeowner’s insurance policy earning a discount because the property is your primary residence. Your insurer has a greater assurance that you’ll be on guard against risks and take precautions to prevent claims if the property is owner-occupied.

Find out more about the differences between homeowners and rental property insurance in the video below.

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