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 think that would be the easier way to understand the difference in the two coverages.
If you own a home and live in it, then you would need a homeowner insurance. 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. These are the reasons.
Who is likely going to take more care of my house? My tenant or me? That’s one point. The insurer knows you would take more care of your home because you have a vested interest in it unlike a tenant who can simply pack up and leave at the slightest urge.
If you live in your home, then you can’t make a claim on a damage done to your property by you as your insurer would not honor the claim. In fact, depending on the nature of the damage, you could be charged with a criminal charge if you make a claim. However, if one of your tenants caused a damage to your property you would be able to make a claim and be paid. It would be regarded as a malicious damage.
I am sure the above points has shed more light on the issue.
Landlords, how can you save money as you get what you need, a landlord insurance policy?
The first thing you need to be aware of is that insurer put into consideration the type of people you take in as tenants. You would do well to consider more of professionals and people with a steady and disciplined life style since this would impact positively on your insurance rates.
Lastly, be sure to get and compare as much quotes as you can. This is a sure way of getting the cheapest possible landlord insurance rates.