Understanding Landlord and Vacant Home Policies: What’s the Real Difference?

If you’ve ever wondered whether your home, rental, or empty property is insured the right way, you’re not alone. What you need really depends on how the home is being used — and that part can get confusing fast. So let’s break it down simply and clearly.

Your Own Home: The Classic Homeowner’s Policy
When you’re living in the home yourself, a standard homeowner’s policy is the right fit. It covers the home, your belongings, and your liability if someone gets hurt.
But here’s the key: homeowner’s insurance is meant for owner‑occupied homes. So if you decide to rent it out — even short‑term — your existing policy may not protect you the way you expect.

Landlord Insurance: When You’re Renting the Home Out
If someone else is living in your property, landlord insurance is what you need. It typically covers:

• The structure
• Your liability as a landlord
• Loss of rental income if the home becomes uninhabitable after a covered claim

It doesn’t cover your tenant’s personal belongings — that’s where renters insurance comes in.

Vacant Home Insurance: When No One Is Living There
Vacant properties face different risks: vandalism, theft, or damage that goes unnoticed for weeks. Because of that, many standard policies won’t fully cover damage if a home sits empty for 30–60 days or more.
Vacant home insurance fills that gap and protects you while the property is between tenants, under renovation, or waiting to sell.

And Don’t Forget Flood Insurance
Flood damage is not covered under homeowner, landlord, or vacant home policies. Flood insurance is always a separate policy.
Even low‑risk areas can experience unexpected flooding, and for rentals or vacant homes — where damage might not be noticed right away — flood coverage becomes even more important.

Long‑Term Lease vs. Short‑Term Rental: Why It Matters
Insurance companies view these differently:

• Long‑term leases (6–12 months) fit standard landlord policies.
• Short‑term rentals (Airbnb, VRBO, etc.) involve more turnover and higher risk. Many landlord policies don’t automatically allow this type of rental, so you may need an endorsement or a specialty policy.

Bottom Line
How your property is used — whether you live in it, rent it, or leave it vacant — determines the type of protection you need. And regardless of the situation, flood insurance is always worth considering.