What You Should Know About Landlord vs. Homeowners Insurance


Coverage of a landlord’s policy against a homeowners policy

Although property owners acquire both landlord and homeowners insurance, there are some differences in what they cover and who they are intended for. For starters, landlord insurance covers homes that the owner rents out, whereas homeowners insurance only protects houses that are owned and occupied by the owner.


Let’s examine the differences and similarities between coverages in more detail.

While homeowners insurance covers more broad coverage for personal goods, landlord insurance covers structural damage.

Landlord insurance and homeowners insurance both cover damage to the structure of a property, such as damage from windstorms, hail, lightning, theft, or vandalism. For landlord-owned items like refrigerators, washers, dryers, and other appliances and tools, it typically includes some sort of personal property coverage.

Homeowners insurance covers homeowners’ personal property, whereas landlord insurance typically does not cover tenants’ personal stuff. Tenants require renters insurance to safeguard their personal property from losses that are covered.


Loss of use coverage is included in both homeowner’s and landlord insurance.

Loss of use refers to the insurance industry’s involvement in providing compensation if a property becomes uninhabitable and residents are compelled to leave. Yet, this has different implications for landlords and homeowners. When it comes to what homeowners insurance covers, loss of usage usually covers any necessary hotel or lodging charges and additional living expenditures beyond a household’s normal budget.

Damage prevents tenants from residing on a landlord’s property, which costs the landlord rental income. Consequently, landlord insurance can aid in making up for lost income, but it cannot cover additional living expenses incurred by tenants.

Personal liability insurance is a part of both.

Although the specifics of personal landlord protection may differ depending on the policy and insurance type, liability insurance is typically included in some way for both homeowners and landlord insurance. Personal liability insurance covers accidents resulting in injuries or accidental property damage on rental and homeowners’ properties, as well as, in some situations, legal bills and court costs.

For instance, if a delivery person slips and falls on some black ice and requires medical attention, both homeowners and landlords are normally insured for liability if the harm occurred on their property.

The cost of landlord insurance versus homeowners insurance

Lemonade’s homeowners insurance is offered for as little as $25 a month. We also offer landlord insurance to owners of condos and apartments in NY, IL, TX, PA, NJ, and Washington, D.C., starting at roughly $25/month.

For the same property, landlord insurance typically costs roughly 25% more than homeowners insurance, according to the Insurance Information Institute. The reason for this is because there are more dangers involved with tenant-occupied dwellings, including damage to the property caused by tenants or their visitors, than with individuals who own and live in their own homes.

But, keep in mind that insurance policies can be tailored to your particular requirements, and the cost of coverage will depend on a number of variables, including the location of your property, its state, and the deductible you choose.

Do you require landlord or homeowners insurance?

Although landlord and homeowners insurance are not required by law, you will need to purchase it if you receive a mortgage for a home that you want to live in or rent out. Even if you don’t have a mortgage, getting protected is a no-brainer because you don’t want to be responsible for significant, unforeseen expenses.

You’ll need extra coverage if you own a house and want to provide short-term rentals, as through Airbnb. Several homeowners insurance firms provide this extra coverage or separate policies entirely. And while Airbnb does provide up to $1 million in coverage each rental, it doesn’t cover everything.

Becoming a property owner in any form is a wise investment. But before you start your property ownership adventure, it’s crucial to comprehend the expenses and hazards involved, as well as what landlord and homeowners insurance does and doesn’t cover. Fortunately, Lemonade has your back at every turn, from locating the greatest insurance plan to aiding in your compensation when an awful event occurs.


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