A tree just crashed into your rental property. Your tenants hurt and you go to file an insurance

claim and you find out you're completely uncovered. Why? It's because you had homeowners insurance

instead of landlord insurance. And now you're on the hook for $100,000 in repairs and legal fees.

And that's not a horror story. It can really happen if you don't understand your insurance policy.

If we haven't met yet, I'm Chad Carson.

You can also call me Coach Carson, and I've been investing in real estate for over 22 years.

And today I'm going to explain the real difference between homeowners insurance and landlord insurance.

And to answer the biggest, messiest questions I've gotten from real investors just like you.

Let's get started.

Okay. investors just like you. Let's get started. So let's talk about the difference between homeowners insurance and landlord insurance. And I can make this very simple. Homeowners insurance is for the

place that you live in. This is where you sleep. This is where you eat. This is where you have all your stuff. And if you have a fire or a storm or some other kind of damage, this insurance pays to repair the property. It pays to replace your personal belongings. And it usually pays for you to live somewhere while you can't live in the house if you're having to build it back or repair it. And this kind of insurance also helps you if you accidentally hurt someone, like if your dog bites a neighbor or if they slip and fall on your sidewalk, the insurance would help compensate you to pay for those issues. So landlord insurance, I can explain really simply too. You still own the property or you have an LLC or another entity that owns the property, but you don't live there. Instead, you have a tenant

who is paying rent to you who lives in the property, but you still want to protect the property

itself and you want to protect yourself in case you were sued or someone got hurt on the property.

That's what landlord insurance does. It pays for replacing or repairing the property in case of

damage from a storm or a fire or something.

It covers you in the legal cost in case someone got hurt at the property. And it typically pays for

lost rent during the time when you're repairing and fixing the property back up because your

tenant might not be able to live there and pay rent during a six to 12 month period, but you still

have mortgage payments. You sell other expenses on the property. So lost rent coverage is very important for you as a landlord.

But one important thing that landlord insurance does not cover

is all of the tenants' belongings.

So if they have computers and they have personal items on the property,

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