Landlord vs. Homeowners Insurance? What Do You Need?

woman hands with paper house

Landlord Insurance

Owning a rental property is a great way to add some extra income to your household. Before you sign a lease agreement with your tenants, it is important to make sure that you have the right insurance policies to provide the right amount of protection for both you and your tenants.

If you will only be renting out your home for a short amount of time a couple of times a year, such as for an annual music festival, your homeowner’s insurance policy may provide enough coverage. If you own another home that you live in full time, you may be able to simply add an endorsement onto your homeowner’s insurance policy to provide coverage for your secondary residence.

If you are planning on renting out your secondary house full time, you will need to invest in a landlord’s insurance policy. A landlord insurance policy will provide coverage for the structure of the home as well as liability coverage that will provide coverage for any legal fees or damages that are associated with a lawsuit. It will not provide any coverage for the assets that your tenants keep in the house, which is why it is important to make sure that your tenants invest in their own renter’s insurance policy.

Typical landlord insurance policies also provide coverage for any lost income if your rental property becomes uninhabitable for any number of reasons. The lost income coverage will normally provide coverage for the rental income that you miss out on for as long as it takes to repair or replace the unit for up to 12 months.

For all of your landlord insurance coverage needs and to ensure that you and your rental home are protected from any unfortunate situation, contact the insurance professionals at Prutting Insurance Group in Scottsdale, Arizona.