top of page

Do I need Rental Property Insurance or Renter's Insurance?


Insurance policy names seem confusing when you are not familiar with them or understand what they are intended to insure. Luckily, these two monikers are somewhat self-explanatory albeit with some slight nuances.


What is the difference between Rental Property Insurance and Renter's Insurance?



Rental Property Insurance


Rental insurance has many names, it is referred to as a Landlord Insurance, Rental Dwelling Insurance, Rental Property Insurance, Landlord Business Owners Insurance, or Real Estate Investors Insurance.


While each policy named above can also have variation in coverage or enhancements offered by the insurer, the core coverage provides protection for damage to the physical structure of the rented property, loss of rental income, and the liability bore by the property owner.


Who needs it?


If you own a property, whether it is a residential, corporate, or commercial property, that you rent to others, you would have likely come across this policy or a variation of it, as you will need it should you not have an alternative risk transfer solution. The policy helps you protect your investment property and related liabilities so you can recover in the event of a loss, restore and repair damages to the property.


It is thus imperative that you speak to your agent or broker when buying this policy considering that, the insurance needs of a landlord who owns a single or a few residential properties may vary from a property manager or a real estate investor who owns multiple residential and commercial properties.


Additionally, depending on the location of your property and the inherent risks exposed to it, other coverage including ones for environmental or sever weather related risks will need to be negotiated in addition to the typical perils that will be covered in a standard insurance policy.


The policy can also be structured differently and tailored to your specific needs. For instance, a portfolio or master program would be a more suitable arrangement for a real estate investor who has multiple properties and continues to acquire more.


Renter's Insurance


Renters insurance on the other hand, is purchased by the renter. Property owners may require their renters to buy this insurance as part of the lease agreement, however, a renter can voluntarily purchase the policy even if it is not required.


What is covered?

Renters insurance provides reimbursement for damages to the renter's personal property, third-party liability, and additional living expenses.


Why would you buy this insurance?

Renters often buy renters insurance to protect against liability that can arise from accidental damage to property of others, accidental injuries to others including guests in their home, reimbursement for damage to their own personal property, and to be reimbursed for the cost of alternative accommodation in the event that the rented property is temporarily unusable due to an emergency or a covered loss or damage.


A businessowner who is renting a commercial space does not have to buy renters insurance as the coverage needed is provided within their business owners’ insurance or commercial property insurance if they have purchased such policies. The business owner should ensure that any unique nuance applying to their particular situation is made clear to their agent or broker and addressed with the insurer for appropriate coverage.


It is important to note that the renter's insurance does not insure the physical structure of the property. That is the responsibility of the property owner, and they can purchase cover for the physical structure through their Commercial Property Insurance, Landlord Insurance or Rental Property Insurance as described above.


Should you need help buying any of these policies, give us a call.


At Axios Risk Solutions, LLC., we help small and medium-sized enterprises, families and individuals minimize and manage their business risks through tailored risk management strategies and protect their business and assets through a variety of insurance solutions in the market. To request a quote or speak to us, call 404-480-0272. ​



Author: Sandra Owusu-Fianko

Sandra Owusu-Fianko is the Principal and Risk Advisor at Axios Risk Solutions, LLC.

She has extensive experience in the insurance industry and a MS degree in Enterprise Risk Management. She is passionate about finding appropriate risk management and insurance solutions for her clients.

bottom of page