The Difference Between Landlords and Renters Insurance

by owner

The landlord of a property that is rented to a tenant usually carries landlords insurance as protection for the financial risks involved in renting out a property. These risks include the building being damaged or destroyed by a disastrous event like extreme weather or a fire, damage to the building, fittings or furniture caused by tenants, or the tenant failing to pay rent. The tenants who rent the landlord’s property insure their personal property by purchasing Atlanta insurance for renters.

Renters insurance covers a tenant’s furniture and other possessions if they are lost or damaged in a fire or other catastrophe. A renters insurance policy also has a liability portion; this provides coverage for a third party’s costs if, for example, a guest is injured in a fall while in the home. Some renters’ policies cover the cost of extra living expenses if tenants have to move out of a property while a landlord undertakes repairs after an insured peril such as a fire.

Standard Atlanta renters insurance policies are generally either broad form – the most commonly purchased policies for renters – or comprehensive form policies. Coverage in broad form policies is for specific named risks such as lightning, fire or theft, while comprehensive form policies cover a broader range of risks, and insurance premiums are generally more expensive than premiums for broad form renters’ insurance.

The owner of a building that is rented to tenants carries landlord’s insurance, an Atlanta insurance product to protect the landlord’s investment in the property. Renters insurance is carried by the tenants to protect them from the risk of loss or destruction of their personal possessions, the cost of lawsuits filed by third parties, and in some cases, additional costs if the rented property becomes uninhabitable as a result of a fire or other disastrous event.

Common questions about renters insurance

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