Homeowners Insurance vs. Landlord Insurance—What to Know Before You Rent Out Your Home

Thinking of turning your primary home into a rental? Before you hand over the keys, there’s something you can’t afford to skip: updating your insurance.

Many homeowners assume their current policy will cover them—but once you're no longer the primary occupant, your standard homeowners insurance likely won’t apply.

That’s where landlord insurance comes in.

✅ What’s the Difference?

Homeowners Insurance is designed to protect owner-occupied residences. It covers the structure, your personal belongings, and liability if someone is injured on your property.

But once tenants move in, you’re no longer the resident—you're the landlord. And that changes everything.

Landlord Insurance (also called a “dwelling fire” policy) covers the structure and liability, but not your personal belongings. Instead, it protects you from risks related to renting—like tenant-caused damage, loss of rental income, or legal liability.

🔁 What You Need to Do If You’re Converting a Primary Home to a Rental

1. Call your insurance agent before tenants move in.

2. Switch to a landlord policy—or add an endorsement if your insurer allows it.

3. Require tenants to carry renters insurance (to protect their stuff + add liability coverage).

4. Document the condition of your home before renting.

5. Update your lease agreement with appropriate liability language.

   
   

Not switching policies could mean claims are denied—leaving you with major repair bills or legal costs.

Want a quick visual guide? Check out the comparison chart below 👇

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🧾 Comparison Chart

Feature	Homeowners Insurance	Landlord Insurance
Designed for owner-occupied homes	✅	❌
Covers the structure	✅	✅
Covers owner's personal property	✅	❌
Covers tenant's belongings	❌	❌
Covers loss of rental income	❌	✅ (optional)
Includes landlord liability	❌	✅
Protection against tenant damage	❌	✅ (some policies)
Requires tenant insurance	❌	✅ (you should require it)
Monthly cost	Lower	Slightly higher