We will begin to answer this question with the following caution: when one asks about a policy being 'cheaper' than another (especially when it is the first question asked), the immediate concern arises regarding the lack of importance of the coverage which is the primary reason for purchasing the insurance.
To answer the question correctly, Homeowners Insurance and Landlords Insurance are not related in any way other than to provide property coverage on a similar dwelling. The Homeowners Insurance policy is defined and written for the Owner Occupied home of the titled owner of the property; the Landlords Insurance policy is defined and written for the Tenant Occuped home of the titled owner of the property.
Each policy contract contains an Occupancy Clause stating the occupancy of the dwelling insured. We have witnessed large losses which have been denied by carriers due to the occupancy not matching the policy purpose. Therefore, if you have a tenant occupied home, you will need to purchase a Landlords Policy and if you are seeking to insure your primary home, you should purchase a Homeowners Policy.
The Landlords Policy statistically poses a greater risk factor to the insurance company; however generally, the Landlords Policy does not provide coverage for personal property (contents) and provides a more limited form of Liability Coverage listed as Premises Only Liability.
Now, regarding cost, the premium is specific to the carrier's experience with each type of policy. There are insurance carriers that have a much worse historic experience on tenant occupied properties; thus, the Landlords Policy would be rated as a higher risk than the Homeowners Policy. However, in most cases, for the same Dwelling Coverage amount, we find that the Landlords Policy Premium is lower than the Homeowners Policy.
A wise word to the public would be to purchase the correct coverage for the application since if a future claim is denied based on the incorrect policy form being purchased, the whole purpose of the insurance is void and unnecessary.
For more information regaring Homeowners Insurance, please click the following link: http://www.HDAinsurance.com/homeowners.html
.JPG){kind=avatar}
To answer the question correctly, Homeowners Insurance and Landlords Insurance are not related in any way other than to provide property coverage on a similar dwelling. The Homeowners Insurance policy is defined and written for the Owner Occupied home of the titled owner of the property; the Landlords Insurance policy is defined and written for the Tenant Occuped home of the titled owner of the property.
Each policy contract contains an Occupancy Clause stating the occupancy of the dwelling insured. We have witnessed large losses which have been denied by carriers due to the occupancy not matching the policy purpose. Therefore, if you have a tenant occupied home, you will need to purchase a Landlords Policy and if you are seeking to insure your primary home, you should purchase a Homeowners Policy.
The Landlords Policy statistically poses a greater risk factor to the insurance company; however generally, the Landlords Policy does not provide coverage for personal property (contents) and provides a more limited form of Liability Coverage listed as Premises Only Liability.
Now, regarding cost, the premium is specific to the carrier's experience with each type of policy. There are insurance carriers that have a much worse historic experience on tenant occupied properties; thus, the Landlords Policy would be rated as a higher risk than the Homeowners Policy. However, in most cases, for the same Dwelling Coverage amount, we find that the Landlords Policy Premium is lower than the Homeowners Policy.
A wise word to the public would be to purchase the correct coverage for the application since if a future claim is denied based on the incorrect policy form being purchased, the whole purpose of the insurance is void and unnecessary.
For more information regaring Homeowners Insurance, please click the following link: http://www.HDAinsurance.com/homeowners.html