A homeowners policy and landlord policy both cover the structure. Coverage for everything else is built around a different answer to one question: who's living in the property?
Homeowners Insurance vs. Landlord Insurance: What's the Difference?
Updated: August 24, 2026
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Key Takeaways
Homeowners insurance covers the property you occupy as your primary residence; landlord insurance is designed for properties rented to tenants on an ongoing basis.
The most important difference is what each policy does when the property becomes temporarily uninhabitable: homeowners insurance pays your temporary living costs, while landlord insurance replaces the rental income you'd lose.
Landlord insurance costs about 25% more than homeowners insurance, according to the Insurance Information Institute, because rental properties carry greater liability and damage exposure.
Homeowners Insurance vs. Landlord Insurance: Overview
Building and dwelling structure | Yes | Yes |
Detached structures (sheds, fences) | Yes | Yes |
Owner's personal belongings | Yes | No |
Landlord-provided appliances and furnishings | No | Yes |
Tenant's personal belongings | No | No |
Liability coverage | Yes — personal and household | Yes — rental property-specific |
Additional living expenses (owner displaced) | Yes | No |
Lost rental income (property uninhabitable) | No | Yes |
Short-term or occasional rentals | With endorsement only | Not designed for this |
Homeowners vs. Landlord Insurance: Coverage Differences
Is Landlord Insurance More Expensive Than Homeowners Insurance?
Landlord insurance costs about 25% more than homeowners insurance, according to the Insurance Information Institute. The higher premium reflects the added risk of a property occupied by someone other than the owner: more wear from tenant activity, greater liability exposure from a property you don't personally oversee and the potential for lost rental income if the property can't be occupied.
A homeowners policy that doesn't apply to your rental situation isn't saving money. It's the wrong coverage for your situation.
When Do You Need Landlord Insurance vs. Homeowners Insurance?
Choose homeowners insurance if...
The property is your primary residence. If you occasionally rent a room or list the home while you travel, your insurer may allow a rental endorsement. A rental endorsement is an addition to a homeowners policy that extends limited coverage to specific rental situations; it isn't designed for properties where tenants occupy the home full-time.
Choose landlord insurance if...
You rent the property on an ongoing basis and don't live there. This covers single-family rentals, second homes rented for most of the year and investment properties. Most homeowners policies won't pay claims that arise from long-term tenant activity.
What Do You Use For Short-Term Rentals Like Airbnb or VRBO?
Standard homeowners policies don't cover short-term rental activity, and standard landlord policies aren't designed for it either. If you list your home on Airbnb, VRBO or a similar platform, you need a short-term rental endorsement or a specialized home-sharing policy.
Some insurers, including USAA, offer home-sharing endorsements that extend coverage during short-term rental periods. Airbnb also provides its own AirCover program, but it has coverage limits and exclusions that may leave gaps a dedicated endorsement would close. Check with your insurer before your first booking to confirm your policy covers short-term rental use.
Home vs. Landlord Insurance: Bottom Line
Your homeowners policy is built for the home you occupy. Once tenants move in on an ongoing basis, a landlord policy is the coverage that applies to your situation.
A cheaper policy that doesn't cover your rental isn't saving money. If a claim arises, you'll pay what the policy won't.
Landlord Insurance vs. Home Insurance: FAQ
Landlord insurance covers the structure of the rental property and detached buildings, appliances and maintenance equipment you provide for the rental, liability if a tenant or guest is injured and you're found responsible, and rental income you'd lose if the property is temporarily uninhabitable due to a covered event. It doesn't cover the tenant's personal belongings.
Homeowners insurance doesn't cover rental properties, and using it on a tenant-occupied home can result in a denied claim. Insurers treat the change in property use as a material change in risk that voids the policy's terms.
Landlord insurance covers four core areas: the rental property's structure, loss of rental income if the property becomes uninhabitable, liability for tenant or visitor injuries and landlord-owned property like appliances or furnishings. It doesn't cover tenant belongings, which require a separate renters insurance policy.
No, landlord insurance never covers a tenant's personal property. Tenants need their own renters insurance policy to protect their furniture, electronics and clothing.
Most insurers require landlord coverage or a rental endorsement once any rent is collected, even for short-term or occasional rentals. For infrequent rentals, a short-term rental endorsement or home-sharing endorsement may be available as an alternative to a full landlord policy.
About Mark Fitzpatrick
Mark Fitzpatrick, a licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident expert in insurance and economics. He has spent nearly a decade covering the insurance market at LendingTree and MoneyGeek, analyzing hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.
Sources
- Insurance Information Institute. "Coverage for Renting Out Your Home." Accessed September 4, 2026.