Homeowners Insurance vs. Landlord Insurance

A homeowner's policy accounts for common risks that are associated with owning a home, but it doesn't cover the range of legal risks that one assumes when renting property to others. Furthermore, a homeowner's policy requires that the property be owner-occupied, but landlords typically don't live in the same dwelling as their tenants. If a non-resident landlord files a claim for damage or loss to a rental property that is only insured under a homeowner's policy, then the insurance company can deny the claim.

It's also important to be aware that while a landlord policy can be designed to cover your personal belongings that are being used on the property, it does not cover the tenants' personal belongings. For coverage of their possessions, your tenants would need to purchase renters insurance on their own if they so desire. Optionally, you can require them to have it as part of your lease agreement.

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