If you own a residence that you are renting out, you need to make sure you have the right insurance before allowing them to move in. Landlord and homeowners insurance may seem similar, but there are some clear differences you need to be aware of.
One of the biggest differences you will find between landlord and homeowner’s insurance is that the homeowner’s policy is typically for an owner-occupied residence. If the resident of the home is not the owner, but they are insured on a homeowner’s insurance policy, then there may be an issue with coverage that arises if a claim is filed.
A landlord’s policy, also known as a dwelling fire policy, a business owner’s policy, or commercial package policy, all typically allow tenant-occupied residency. The difference between the policies comes in because an owner is more likely to address a potential claim issue than a renter, resulting in fewer claims overall.
For this reason, landlord insurance may be more expensive than a homeowner’s insurance policy because there is more of a risk for the insurance company offering the policy.
To understand the differences, even more, we need to go over the basics of these policies. Remember, the coverage offered under each policy varies depending on a number of factors, including the carrier and endorsements.
The same three coverages can also be applied to landlord’s insurance; however, there are a few differences in what those allowable coverages are.
If you have a rental property and want to ensure you purchase the right coverage, contact the Panorama professionals today to discuss your options. They will get the details regarding your specific situation and make sure you find affordable rates with the right insurance company.