Homeowners vs Rental Property

One of the main questions we get everyday is, what is the difference between a homeowners insurance and a rental property insurance? We immediately reply with a counter question, are you going to live in your home or are you going to rent it long term? Depending on the answer, we’ll provide you with a solution.

There’s no question insurance terminology can get complicated, but understanding the main differences between these two policies is important to have the right insurance policy to protect your asset.

Here’s a quick breakdown of each:

Homeowners Insurance

Homeowners insurance is designed to protect individuals who own and reside in their primary residence. It provides coverage for both the structure of the home and personal belongings in case of damage or loss due to covered events, such as fire, theft, vandalism, wind, or certain natural disasters. Additionally, homeowners insurance also includes liability coverage, which protects the homeowner if someone is injured on their property and files a lawsuit.

Rental Property Insurance

Rental property insurance, also known as landlord insurance or dwelling fire insurance, is specifically designed for property owners who rent out their properties to tenants. This type of insurance provides coverage for the physical structure of the rental property, including the building itself, as well as any personal property owned by the landlord and used for maintenance or repair purposes. Rental property insurance also includes liability coverage to protect the landlord from liability claims arising from injuries or property damage that occur on the rental property.

Key Differences:

  • Coverage: Homeowners insurance covers the primary residence of the homeowner and their personal belongings, while rental property insurance covers the structure of the rental property and the landlord’s personal property used for maintenance.
  • Liability Coverage: Homeowners insurance typically includes liability coverage for the homeowner, while rental property insurance includes liability coverage for the landlord.
  • Rental Income Protection: Rental property insurance often includes coverage for loss of rental income if the property becomes uninhabitable due to a covered event, such as a fire or a storm, while homeowners insurance generally does not provide this coverage.

If you own a home that you live in, you would need homeowners insurance. If you own a property that you rent out to tenants, you would need rental property insurance. It’s essential to have the appropriate insurance coverage for your specific situation to ensure you are adequately protected.

Remember, it is important to assess your specific needs, financial situation, and long-term goals before purchasing insurance. At Deer Insurance Agency we guide you through this process and help you get the policy that works best for you and your family. Start your quote process HERE and provide us with the information we need to get you a complete and honest quote for you and your family.

Deer Insurance Agency, LLC is an independent insurance agency licensed in the states of Florida, South Carolina, and Maryland. If you live in any of the States we provide insurance solutions and need an insurance program, please email us at hello@deerinsurance.com. We’ll be more than happy to help you.

At Deer Insurance Agency, you are DEER to our HEART!