Have you ever wondered the difference between landlord insurance and the regular homeowner insurance coverage? If you do not understand, you could have things really confused and this could cost you a lot unless corrected. Let’s see the difference.
First, let’s look at the difference between the two situations. I assume this should be a good way to clearly show the difference.
Do you own the home you live in presently? Then what you would be needing is a homeowner insurance coverage. If however you own a home but do not live in it rather you have it rented out to a tenant, then you would be needing a landlord insurance. Let’s look at the reason for the different needs.
If we were to go by common thinking, a landlord is expected to take better care of his property much more than a transient tenant would. That’s one point. As a result of this, your insurer would want to know if you live in the house yourself or have it let out to a tenant. This information would of course form a major basis for the home insurance policy you are going for.
If you live in your home and somehow damaged a part of your home, you would not go to make a claim for that because it is in most policies excluded. In most cases, making such claims could resulting in the insurer filing charges against you for trying to defraud. On the other hand, should one of your tenants cause a damage to your property, you could make a claim and be paid on your claim. Depending on the scope of your coverage, it could come under malicious damage.
Given the examples given above, it wouldn’t be out of place to think you now understand the difference between the two coverages.
Landlords now need to know how to save on their landlord insurance policy
One very important factor you should never forget is that the type of people you admit as tenants affects your rates tremendously. A simple rule you can follow in choosing a tenant is the work they do. Professionals are generally regarded to be steady and responsible. whether this is true or not, you want people who would impact positively on your insurance premium.
In conclusion, free home insurance quotes are not to be despised as you search for cheap coverage. This is a sure way of getting the cheapest possible landlord insurance rates.
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