Standard homeowners insurance is almost always cheaper than landlord insurance because it only covers owner-occupied residential risks, whereas landlord insurance must account for the vastly expanded liability and financial exposures unique to renting out property to third parties. Landlord policies incorporate specialized risks that standard home insurance excludes, such as tenant rent default, malicious property damage by occupants, theft of landlord-owned fixtures, and legal expenses for eviction proceedings. Because of these extensive additional risk tiers and higher claim frequencies associated with rental properties, insurers price landlord policies at a noticeably higher rate compared to standard owner-occupier policies.
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