For example, let’s say you want to convert a house you own into a full-time rental. What kind of insurance do you need to protect your space when tenants live there? You probably need a homeowner’s policy. However, if you only want occasional renters, home insurance may be more suitable. Here are some factors to consider when determining which type of insurance is right for you.


If you plan to temporarily rent your home for just one occasion (for example, to coincide with a major sporting event in your city), your current landlord’s policy may offer you some protection, according to the Insurance Information Institute (III). Home insurance can help cover damage caused by certain risks such as fire or theft if you rent your home occasionally. However, you may not be able to purchase home insurance if you do not live in the house.

A local agent can help you understand what types of scenarios may or may not be covered by home insurance while you are renting your home to tenants.

If you plan to rent out your single-family home (or second home/investment property) on an ongoing basis, you are probably a candidate for home insurance, says III, which is usually not the case with the homeowner’s policy. Protect yourself in this scenario.


As with a home insurance policy, home insurance usually helps insure the building itself (and other structures on the property, such as sheds or fences) against damage caused by fire, lightning, wind, hail, or other. there are losses covered. To get home insurance, you must live in the house.

Home insurance may provide coverage if you live in your single-family home and rent a room to tenants, depending on how many people are renting or how long they are staying in your home. Insurance coverage varies depending on the insurer or the insurance policy. So ask your representative before renting a room on your behalf. If you plan to rent out your entire home to tenants, you will need home insurance.

Other important differences between homeowner and landlord policies are:

Personal Property Coverage.

While home insurance can help cover many types of items such as furniture, clothing, and computers, home insurance typically only covers items used to maintain a rental property. If you leave personal belongings behind that will not be used to repair the rental property, you will likely find that your landlord’s insurance does not provide protection. However, it can help cover things like a snowplow or lawnmower that you keep on hand to help with property maintenance.

Liability Insurance.

Home insurance generally only provides liability insurance for rented premises. If a tenant is injured in the house they are renting and you are legally responsible, liability insurance under your landlord policy can help you pay for medical or legal bills. In the meantime, the liability portion of the homeowner’s policy will usually cover you and your family members who live with you at home, whether or not the accident happens in your home.


Home and landlord insurance do not cover the personal effects of your tenants. This is why you may want renters insurance to be a condition of your rental agreement. Tenant insurance can help protect your tenants’ belongings and provide them with some liability protection.

It’s a good idea to think about the risk of inviting paying customers to your home, reading your policies, or checking with your local representative to make sure you have the right coverage before hiring tenants for a particular one.