Normal Vs. Land Lord Insurance

4 Replies

Normal Insurance vs. Land Lord Insurance

What is the difference and is it needed?

I got some quotes and they're roughly the same (land lord was cheaper by $29/month but less coverage). My parents own the property but I do all the leg-work. I just want to make sure I do my due-diligence and make sure everything is Okay.

Should I convenience my parents to switch? They feel like it's too much of a hassle and they've been with their previous insurance company for years.

*Note I haven't ask them to talk to their current insurance company and ask for their land lord policy. that just came to me. 

Hi @Minh Lai - if your parents are renting out their house, they definitely need a landlord policy.  Aside from the homeowner's coverage they have probably being invalid if they were to need to file a claim, landlord policies have liability coverage.  Mine are $300k or $500k.  The liability coverage is key to me.  My LL policies are a little more expensive than my homeowners but well worth it.

I would just ask my parents to let their existing insurer know it is a rental.  Shouldn't be a problem or shouldn't have to change carriers.

@Steve Vaughan - Okay that liability coverage sounds important =P.

I'll tell my parents to talk to their existing insurer. If they don't want to go through the hassle I'll work with them and talk on their behalf.

Thanks. 

@Minh Lai I want to second @Steve Vaughan comments. 

To clarify, if you are stating 

"Normal insurance" is a Home owners policy, which is set up to insure someone's primary residence. 

"Landlord" policy is for rental of a property as a business venture which you do not reside in.

If this is the case, and they are renting it out, then the homeowners policy can deny claims.  So, they have expensive insurance as it will not cover claims.

Update the current agent as to the status of the building and they should guide you in the right direction.