It can be difficult to know the difference between home and landlord insurance if you’re not familiar with the two policies. Luckily, we’ve put together this article to supply you with all the info you’ll need! Keep reading to find out more.

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Landlord insurance: what does it cover?

Landlord insurance is a collection of policies that are put in place to protect the landlord and their rental property against things such as accidental damage and loss of rental income. There are different types of landlord insurance as each policy can include different “add-ons”. The add-ons can include: landlord building insurance to cover the property as well as the landlord, property owner’s liability to protect the landlord should a third party or the building become injured or damaged because of property, or landlord contents insurance to protect any furnishings, fixtures or fittings the landlord has supplied with the building. The type of cover a landlord chooses depends on what they wish to protect.

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What does home insurance cover?

Home insurance (also referred to as home-owners insurance) is very similar to landlord insurance in the sense that it is also a range of policies put in place. However, this time the policies are there to protect the homeowner. 

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Home insurance typically consists of building insurance and contents insurance. You can buy these separately from different providers or together for convenience. Although home insurance is not a legal requirement most mortgage providers will insist you have at least building insurance that covers you for the entirety of the mortgage. Building insurance will ensure the building is protected against natural disasters such as fire or flood and contents insurance will safeguard you from things like theft or accidental damage. 

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Landlord insurance vs homeowner policy

Although the two policies sound the same they are classed as different. One of the main reasons for this is that landlords make a profit from their properties while a homeowner does not. While both insurance policies will protect you if your home is damaged, home insurance may not cover you if you rent out your property. This will be stated in the policy you have chosen. 

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Do I need Landlord insurance?

Just like home insurance, landlord insurance is not a legal requirement. However, if you are renting out your property to a third party it is very highly advised that you purchase a policy. This will not only protect you but your property investment too. 

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Lets Insure

If you’re struggling to find helpful and relevant information for renting out your property, Lets Insure is the place for you! It’s free to sign up and it will help you effectively and efficiently start and manage tenancies while also ensuring you are compliant. Contact us today with any questions you have and we will be happy to assist you!

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