Difference between personal and commercial insurance policy for a landlord?

3 Replies

What's the difference between a personal policy and a commercial policy for a landlord?

I was getting a quote for umbrella from RLI and they won't cover properties that are under a commercial policy:

  • Excludes residential properties that are covered under a commercial or other non-personal premises liability policy.

But, they still cover "rentals". So what's the deal? Can you even get a rental put on a personal policy? If so what's the difference?

@Jeff L. I believe the difference has to do with the number of units in the building. Five and up is considered commercial (even though technically its a residential property). 1-4 unots would be a "personal" policy. 

Originally posted by @Rob Beland :

@Jeff L.I believe the difference has to do with the number of units in the building. Five and up is considered commercial (even though technically its a residential property). 1-4 unots would be a "personal" policy. 

 Well the quote my insurance gave me says "commercial general liability" on it and it's for a single family. So I'm kind of confused.

Jeff:

The only difference is what underwriter it goes to.  You are correct that RLI will not insure over it, but we have many that will.  I'm going off of the name and location, but I'm 90% sure you have my number/email.  Just let me know what your trying to do and I will gladly send over a quote with other insurers that don't have the same issue.