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What’s the difference between home & contents insurance and landlord insurance?

October 10, 2022

Every landlord desires a safe investment and dependable tenants. But not everything will go to plan, so property investors need landlord insurance rather than home & contents insurance to protect themselves and their asset.


Home & contents policies typically protects against events such as fire and storm. Yet, these policies often won’t cover loss of rent and tenant damage. Owners, therefore, must find a specialist landlord insurance policy offering extra protection not covered by standard home & contents policies. 


In a nutshell, landlord insurance covers malicious damage or theft caused by tenants or any of the tenant’s guests and loss of rent if a tenant defaults. This type of insurance covers legal expenses, too, if the landlord and the tenants end up in court. 


Landlord insurance should also cover damage to the building structure and any contents caused by fires, lightning strikes, storm and water damage, floods, falling trees, and vandalism. Additionally, it should cover the landlord for death, injury, or damage to the tenant if the landlord is somehow at fault. Most landlord insurance policies will include a version of public liability insurance in the terms and conditions – although be sure to check the fine print for your peace of mind.


Like most insurance policies, when it comes to landlord insurance, it isn’t a case of one-size-fits-all. The amount of coverage and limits offered will differ from insurer to insurer. Therefore, opting for the right landlord insurance policy is essential to protect an investment and lessen the risk of financial and emotional stress. 


Also, while most mishaps that cause damage to the investment property or loss of rental income are covered, a few items aren’t. For example, you can’t claim general wear and tear against your landlord insurance policy. Likewise, if a landlord damages the property, landlord insurance won’t cover this incident or event. Again, this will depend on the policy’s terms and conditions (Ts & Cs). 


Finally, any damage caused by termites or rats and other vermin isn’t generally covered, while some landlord insurance won’t reimburse you for damage caused by pets. 


Talk to your local Raine & Horne Property Manager today to learn more about what landlord insurance covers.