Landlord insurance is typically meant for people who rent homes to tenants. It helps protect the property, certain landlord-owned belongings and rental income.

A landlord policy typically includes:

• Dwelling coverage for the home itself
• Property contents coverage for items the landlord provides, such as appliances or furniture, but not the tenant’s belongings
• Liability coverage, which can help if a tenant or visitor is injured or their property is damaged and the landlord is found responsible
• Loss of rental income coverage if the home is uninhabitable after a covered loss

Coverage details, limits and options can vary by insurer and policy.

Homeowners insurance can help protect the home you live in, your personal belongings and your liability. If you’re wondering why homeowners insurance may be important, it helps to understand the types of coverage a standard policy includes.

• Dwelling coverage, which can help pay to repair the home’s structure
• Personal property coverage for belongings like furniture, clothing and electronics
• Liability coverage, which may help if someone else is injured or their property is damaged and you’re responsible
• Loss of use coverage, which may help pay for added living expenses if you can’t stay in your home after a covered loss

Landlord insurance may help cover certain types of damage caused by tenants, but coverage depends on how the damage happens and the terms of the policy.

For example, damage linked to a covered event, such as a kitchen fire that starts while a tenant is cooking, may be handled differently than intentional damage or normal wear and tear. Issues like stained carpets, scratched floors or minor maintenance problems are typically considered part of routine property upkeep rather than insurable losses.

Landlords often rely on a tenant’s security deposit or require tenants to have renters insurance to help address damage or liability concerns. Some insurers also offer optional coverage or endorsements that may provide additional protection for rental property risks, such as:

• Accidental damage coverage, which may help with certain types of tenant-caused damage that aren’t due to normal wear and tear
• Vandalism or malicious damage coverage, which may apply if a tenant intentionally damages the property
• Extended liability coverage, which may offer added protection if someone is injured on the property

Homeowners insurance may no longer be the right fit once you start renting out your home. These policies typically are written for homes the owner lives in.

For example, liability coverage in a homeowners policy is designed for situations involving injuries or damage to someone else or their property. When a home is rented, insurers may evaluate risks differently because tenants and paying guests are involved.

According to the National Association of Insurance Commissioners (NAIC), because landlord policies cover a wider variety of potential claims, they typically can cost 10-25% more than homeowners policies. Landlord insurance helps protect your dwelling in scenarios where a homeowner’s policy may not, including lost rent after a covered loss, liability if a tenant or visitor is injured, and coverage for landlord-owned items left for tenant use.

Not always. Landlord insurance typically covers long-term rental properties. Short-term vacation or seasonal rentals involve different risks, such as frequent guest turnover and higher liability exposure. The NAIC notes that many homeowner and landlord policies are not designed to cover accidents related to short-term rental activity, even if there is no specific exclusion.

If you live in the home but rent out a room or separate space, you may still choose to keep homeowners insurance. However, you may need to adjust the coverage to reflect rental use, since standard policies do not cover damage or liability connected to paying guests. It’s a good idea to review your policy before renting out any part of your home, and check with your insurer to find out if your coverage matches the situation.