Landlord Insurance VS. Home Insurance

[Trevor Aydelott]

Now I have home insurance on my properties, even the investments. 

Now I was told that landlord insurance is cheaper than home insurance. 

What are your thoughts? 

I have properties in California and Colorado. 

[Bill B.]

Landlord insurance is USUALLY cheaper. It’s been cheaper for me in Nevada and MN. The reason being is they don’t cover any personal property inside the property. That’s why you insist your renters get renters insurance, that IS super cheap. If there’s a fire and all your tenants stuff gets soaked in a pipe burst, stolen, or burns up, it’s all gone.

As mentioned above, there is zero reason for an insurance company to pay you if you make a claim on a property with homeowners insurance and you’ve been renting it out to living there. This reminds me fo the people I knew that “changed some facts” to insure their racing motorcycles or their imported from Canada 2 strokes. It got them past the DMV for proof of insurance. But when they made a claim they got zero. 

Ps. Also remember that most policies have a maximum vacant days limit before they won’t cover your property either unless you notify them and pay for the higher cost vacant premises policy.