Renters Insurance and Landlords Insurance:
What does a Landlords insurance cover compared to Renters insurance?
Each type of insurance covers different things and has different purposes. For the best possible protection of both Landlord and Renter, having both insurances is always best. Many Landlords and property management companies are now requiring Renters to have insurance, sometimes because the Landlords insurance requires this.
Purpose of each type of coverage:
Landlords insurance covers the structure – from foundation to roof – of permanent structures and systems for plumbing, heating, etc. Sometimes this insurance will also cover lost rents for owners while a home is being repaired, but this usually requires a lost rent rider.
Renters insurance covers personal belongings such as furniture. Most of the time, this insurance also covers things such as clothing, electronics, jewelry, etc. Depending on the policy, it may also cover temporary housing while the home is being repaired. Renters insurance is generally inexpensive and can often be added on to an automobile policy.
Some things may be covered by either type of insurance. For example, if a guest at the home falls down on ice or off of a loose step, the liability coverage of either the property owner or the renter may cover this.
The bottom line is that both parties should have insurance coverage to protect the home, the furnishings and personal belongings, and the people living at and visiting the property.