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HOME INSURANCE 101: Owner-Occupied versus Investment Property

Two identical homes, right? Not to the Insurance Companies!

People assume that all home insurance is the same.  But two identical homes may actually be viewed another way by the insurance industry.  If one is owner-occupied and the other is tenant-occupied, the two homes may be subject to different rates and coverage.  Why? According to some insurance companies, this is because the typical owner-occupied residence is better maintained and in the long-run will pose less of a damage risk.   

Different Scenarios, Different Home Insurance Plans

While some insurance companies do not even offer policies for homes that are tenant-occupied, there are those that specialize in this type of coverage. It is important to understand that owner occupied homes and renter occupied investment homes differ significantly in needs. An owner-occupied homeowners’ policy, for instance, protects the home’s contents, while an investment renter occupied home policy does not.

It is for this reason and more that a landlord should be upfront with his insurance agent. In fact, by not disclosing what your home is classified as, you may set yourself up for being inadequately covered – or having no coverage at all.   

For the best available homeowners insurance, including landlord and renter’s coverage, speak to an experienced independent insurance agency.  With a network of leading insurance companies at their disposal, they’ll do the shopping for you and find customized policies that can protect you from all the liability risks involved with any category - at the lowest quote.

AT PRIME INSURANCE, EVERY DAY IS A PRIME DAY. For more info and answers to your questions about NJ Homeowners Insurance, Landlord Insurance NJ or NJ Renters Insurance, visit us at


While most people assume home insurance is the same in all scenarios, it is not always so. The higher rates and coverage associated with insurance for a home that is rented reflects the assumption that a home that is not lived in by its owner is not maintained as well. Although not all insurance companies provide home insurance coverage for those homes that are rented out, a professional independent insurance agency can use its resources to locate a good policy that fits your needs, at a low rate.



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