Welcome to www.JohnMcCarter-RealEstate.com Sign in | Help

John McCarter

Landlord and Owner Insurance Are Not The Same

All home insurancepolicies are not equal.  As a homeowner,you have an owner policy which covers your house and belongings in case of adisaster such as fire; liability in case someone falls and is hurt on yourproperty; and theft should a burglary occur. All home owners are familiar with this type of policy.  But now you’re a landlord and you need adifferent type of insurance.  You need alandlord policy. 

The major reasonto have a landlord policy is vacancy. With an owner-occupied policy, if the home is vacant for more thanthirty days, you may not be covered if there’s a claim.  With a landlord policy, you can be covered nomatter how long the property is vacant. But even if the home is occupied by a tenant and you don’t have alandlord policy, you may not be covered because the occupant is not you.

Anotherreason to have landlord insurance is if the property becomes un-inhabitable dueto an insured peril, such as those listed above.  If this happens, your policy can cover youfor loss of rent while repairs are being made. This can be an enormous benefit if it were to take three months or more torepair the house after a fire.

Finally, thethird reason for a landlord policy is you don’t need to insure as much personalproperty when you rent out the home. Since you’re not living in the house, you don’t need to insurefurniture, jewelry, etc. and that saves on the cost of the insurance.  Speaking of savings, check with youraccountant, but typically, the cost of the landlord insurance policy is abusiness deduction for tax purposes.

Published Monday, January 10, 2011 6:52 PM by R&B Properties, Inc.

Comment Notification

Subscribe to this post's comments using RSS



Stephanie Macfarlane said:

All the policies you have present here for our info are so good and giving me good learning for my business http://www.allaboutessay.co.uk/essay-on-abortion/  working improvement. Thanks for sharing good stuff here always.

January 24, 2018 6:34 AM

Leave a Comment