When it comes to insurance coverage, many individuals are unsure of what the difference is between tenant insurance and landlord insurance. Understanding what is covered in each of these policies is crucial for ensuring that all inhabitants of a home are covered in the event of a natural disaster or accident. As leading providers of landlord insurance and tenant insurance policies, Mountainview Insurance understands the importance of having the right coverage. That is why their experts have compiled some information comparing tenant insurance vs. landlord insurance to help you understand what is covered in each plan and what is not. This information will help you determine which policy is best for your specific needs.
What insurance does a landlord need?
Tenant Insurance
While many tenants think that they are covered by their landlord’s insurance policy, this is rarely true. Also known as renter’s insurance, tenant insurance is designed to cover personal belongings and provide liability coverage. Types of tenant insurance policies include:
Personal Property Coverage
Without one of these policies, a tenant’s property will not be covered if it is stolen, damaged, or destroyed. A personal property coverage plan can help to cover the cost associated with replacing household items, clothing, and other belongings up to a certain amount. It should be noted that some items—jewelry, coin collections, etc.—are not covered by this plan.
Liability Coverage
Liability coverage is crucial for tenants as it can protect them from paying certain costs like medical bills out of pocket. If an injury or property damage occurs due to negligence from a tenant, liability coverage can help to defend them and pay for damages in their stead.
Additional Living Expenses
If tenants ever need to leave their dwelling due to a natural disaster or accident, this policy can cover hotel bills and food costs while repairs are completed.
Landlord Insurance
While tenant insurance is focused on belongings, landlord insurance is primarily focused on protecting the property. It is also designed to protect the landlord in the event of a claim or lawsuit. Types of landlord insurance include:
Property Damage
These policies cover any costs associated with damage to the dwelling caused by fire, theft, natural disasters, vandalism, and tenants.
Liability Insurance
Liability insurance protects landlords in the event of a claim or lawsuit filed against them by individuals injured on their rental property. These policies will help cover the costs of claims such as medical bills, legal fees, and settlement costs, reducing or eliminating out-of-pocket expenses.
Loss of Income
Some landlords are heavily reliant on the monthly income they receive from tenants. If their rental property becomes uninhabitable due to an event or disaster, they can be left without this income for months. A loss of income policy protects landlords by covering this lost income while repairs are completed.
To learn more about their tenant insurance and landlord insurance policies, get in touch with the team at Mountainview Insurance. They can be reached at 604-557-0255 and are ready to provide you with the best policy for your needs.