Renters Policies vs. Landlord Policies |Paradiso Insurance

Apartment buildings

If you are getting or giving an apartment or house on rent, you must have come across any of these two policies; renters or landlord insurance. Read on to know what they are, what they cover, and more. 

Renters vs. Landlord Policies Defined:

As the name suggests, a renters policy is specialized insurance for the tenants. It only protects the renter from liabilities and their belongings in case of loss or damage – the home is not covered in this policy.

Landlord policy, on the other hand, protects the home from damages and the owners (landlords) from liabilities – renters and their belongings don’t benefit from this policy. 

A renters policy is paid for by the renters, while landlords pay for the landlord policy.  

Coverage Differences Between Renters and Landlord Policies:

Let’s take a look at how the two policies work in some of the most common coverage situations:

Property Damage:

  • Renters: The renters’ policy does not include property damage because the tenant doesn’t own the rental property.
  • Landlord: Property damage is covered by landlord insurance, and it’s also the main purpose of purchasing this policy.

Rental Income Loss:

  • Renters: This coverage is not included in the renters’ policy because the renter has no claim over the income generated from the property.
  • Landlord: Lost rental income is a part of landlord policy because the landlord earns the rental income. It protects the landlord from financial loss for the period the property cannot be rented.

Flood Protection:

  • Renters: This is an optional policy that can be bought separately with renters insurance. It protects the renter’s personal belongings in case of a flood.
  • Landlord: This is an optional policy that can be bought separately with landlord insurance and pays for the property damages caused by the flood.

Liability Protection:

  • Renters: It is included in renters policy and protects them from liabilities arising from conditions like someone getting injured on the property they’ve rented.
  • Landlord: Also included in the landlord policy. If someone is injured at the property and the landlord is found at fault (like if the landlord called a repairman to fix an issue but he gets injured), then liability protection covers the medical and legal costs.

Is Renters Insurance Compulsory?

Since a renter doesn’t own the property, they may not really be interested in getting any kind of insurance. However, most landlords require the tenants to have renters insurance. Here are the benefits both the tenant and the landlord can get for renters insurance:


  • If the property of the renter is stolen, damaged, or lost, they will get compensation.
  • If the guests of renters are injured on the property, they will be protected from liabilities.
  • Covers personal property of the renter like a laptop, cell phone, and clothes, etc., even if they were not in the house when damaged, lost, or stolen. 


  • Covers temporary housing cost in case the property is damaged due to fires or natural disasters
  • Landlords can get sued if the tenant’s property is lost or damaged because the landlord failed to make the property safer. But if the tenant has a renters policy, they will get coverage, decreasing the likelihood of them suing the landlord.
  • It may also help with mitigating injury or damage risk caused by pets to other people and their properties. However, it won’t cover damage to your own property.

Wrapping it Up:

Whether you are moving into a rental apartment or welcoming tenants into your own property, you need an insurance policy to be on the safe side. 

At Paradiso Insurance, we offer both renters and landlord insurance policies at unparalleled prices – call us at (860) 684-5270 to know more.

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