The Difference Between Landlord House Insurance And House Owners Insurance

It may seem like we are splitting hairs by making a distinction between landlord house insurance and house owners insurance because landlords are house owners, after all, but it is an important point that is sometimes overlooked by people applying for house insurance. This is because the term 'house insurance', and also 'home insurance' are often used interchangeably to refer to the house structure or the contents of the house, and it is sometimes difficult to know which is being referred to.

To clarify, the correct term for insurance on the contents of a home is actually 'contents insurance', however, the terms 'house insurance' and 'home insurance' are sometimes used instead which makes for a bit of confusion. House insurance, on the other hand, refers to coverage for the actual structure itself as it is affected by land subsidence, fire and flooding, for instance.

When it comes to insurance as it relates to the home, house insurance does not mean the same thing to a landlord as it does to a person who owns, and lives in, their home. A home owner who lives in the home they own will need cover for both the structure and its contents and we will call this combined form of insurance 'house owners insurance'. A landlord, on the other hand, needs to have insurance to cover the structure and other items like the geyser and pool pump, for instance, but not the contents of the home unless it is leased fully furnished. Hence, landlords need 'landlord house insurance' as opposed to house owners insurance.

The distinction between landlord house insurance and house owners insurance is important when it comes to the inclusions and exclusions of a house insurance policy and can ultimately affect the cost of the premiums. Landlords need to ensure that they do not pay for cover like contents insurance if they do not need it and people who live in the homes they have purchased must make sure that they are covered for both the structure of their home and its contents so that they do not end up being inadequately insured.