Landlord Insurance vs. Homeowners Insurance
Before you rent out your home (or let a friend or family member stay there rent free), contact your home insurance agent about landlord coverage. Your homeowners policy might offer some protection if you rent out your home on a very short-term basis, but if you plan to rent it out on an ongoing basis, you need landlord insurance. You may not be aware that you are only eligible for homeowners insurance if you use the property as your primary residence. A typical homeowners insurance covers damage to your personal property in the home against covered losses like fire, water damage and theft. Landlord insurance policies do not cover the tenants personal belongings -- only the structure and sometimes liability coverage. If a tenant is injured on the property and sues you for damages, your landlord insurance will cover the legal fees and potential medical expenses. Homeowners insurance will provide liability coverage for you and other household members, even if the accident does ...