What is the Difference Between Landlord and Renters Insurance?

Landlord and renters insurance play a key role in protecting the financial interests of businesses, families and individuals.

The right combination of policies can help cover all parties in arrangements where they may share stakes, such as while owning, maintaining or occupying rental residences.

However, while the right insurance policies can cast a versatile and reliable financial safety net, understanding the intricacies of these situations is essential.

What is Landlord Insurance?

Also known as rental property insurance, this type of coverage should be a top priority for any landlord or property management company. These policies are typically purchased to financially protect the exterior structure, shared equipment and common areas of rental properties.

Additionally, landlord insurance may include liability coverage to offset third-party losses if a landlord is allegedly at fault, such as due to poor maintenance. In some cases, this type of insurance may also help policyholders recoup lost income should a rental unit be temporarily uninhabitable, thereby preventing landlords from collecting rent on it.

What is Renters Insurance?

While landlord insurance can help pay for losses involving a landlord’s property, liabilities and income, it typically does not include any coverage for tenants’ belongings. Fortunately, renters insurance can step in to ensure that all parties involved in rental agreements are financially protected.

While a landlord’s coverage typically covers the exterior of a structure, a renter’s coverage can help financially secure their own belongings. Additionally, renters insurance typically includes personal liability coverage and loss-of-use coverage.

As such, if a renter is at fault for another party’s injuries or property damage, or needs alternative living accommodations due to their unit being uninhabitable, they may receive aid by filing a claim.

Landlord and Renters Insurance in Lake Forest, IL

Contact Price Insurance today to learn more about these types or coverage or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.