Back to top
Smart Search Smart Search
  Try Smart Search An intelligent search tool to help you find the info you're looking for. Try it now
Smart Search
< Start Over Welcome to Smart Search Quickly locate tools, tips, resources, insurance information and more. Smart Search For example: car insurance tips or common claims Popular Searches

Do I Need Homeowners or Landlord Insurance?

Updated: February 2016

Suppose you have a single-family home that you want to rent out full time. What kind of insurance do you need to help protect your place? You most likely need a landlord policy. But if you plan to have tenants only sporadically, homeowners insurance may be a better fit. Here are some factors to consider when determining what kind of insurance is appropriate for your situation.

A man filling out an apartment lease form, while the landlord is getting ready to give him keys to the rental property.

Length of Rental Agreement

If you're planning on renting out your home for a single occasion (to coincide with a big sporting event in your town, for instance), then it's possible that your existing homeowners policy may provide some protection, says the Insurance Information Institute. While the policy may help provide protection if you rent out your home occasionally, you may find that you cannot purchase homeowners insurance if you do not live in the home. A local agent can help you understand what types of scenarios may and may not be covered.

If you're planning on renting out your single-family home (or a second home/investment property) on an ongoing basis, then you're likely a candidate for landlord insurance, says the III, because a homeowners policy typically won't protect you in this scenario.

Need help with your homeowners or landlord policy? Talk to an agent.

Get a quote > Find an agent >

Types of Coverage Offered

Like a homeowners policy, a landlord policy typically helps protect the building itself (and other structures on the property, such as sheds or fences) if there's damage from a fire, lighting, wind, hail or another covered loss. To purchase homeowners insurance, you must live in the home. If you plan to rent out the home to tenants, you'll need landlord insurance.

Other key differences between homeowners and landlord policies include:

Personal property coverage. While homeowners insurance may help protect many kinds of belongings, such as furniture, clothing and computers, landlord insurance typically only provides coverage for items used to service the rented property. So, if you leave personal items behind that are not used to service the rental property, you'll likely find that landlord insurance won't provide protection. It may, however, help cover items such as a snowblower or lawn mower that you store on site to help maintain the property.

Liability coverage. Landlord insurance typically only provides liability coverage relating to the rented premises. If a tenant is hurt in the home you're renting out and you are found legally responsible, the liability coverage on your landlord policy may help cover the resulting medical expenses or legal fees. Meanwhile, the liability portion of a homeowners policy typically covers you and relatives who live with you in the home, whether the accident happens in your home or not.

Damage to Tenants' Belongings

Neither landlord insurance nor homeowners insurance will typically protect personal items owned by your tenant. That's why you may want to make renters insurance a condition of your lease. Renters insurance may help protect your tenant's possessions, and also provide them with some liability protection.

It's a good idea to give some thought to the risk of inviting paying guests into your home — and read your policy or contact your local agent to make sure you have the appropriate coverages in place — before you welcome renters for any length of time.

This content is for informational purposes only and may not be applicable to all situations.

Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications. Allstate Insurance Company, Allstate Indemnity Company, Allstate Fire and Casualty Insurance Company, Allstate Property and Casualty Insurance Company, Northbrook, IL. © 2017 Allstate Insurance Company, Northbrook, IL.

ECC Monitor: OK