Landlord insurance less expensive than homeowner's?

[Peter Turner]

I got a quote with Nationwide who has my homeowners.

They are selling me a landlord insurance for $580.

This insurance covers the Dwelling for $135k, Extended coverage (not sure what that includes) and vandalism and mischief. Deductible is $1000

I did not want personal property coverage since the appliances I am leaving do not cost more than $1000 combined, but even with that it was going to be $630. Still a lot cheaper than homeowners.

This sounds like really good price when my homeowner's policy is $800 a year. I was expecting it for be a lot more since that's what many articles claimed landlord's policy to be at least 20% more than homeowners policy, so I wonder If I am missing some essential coverage that should be included and that is why is not more expensive than my homeowners?

Nationwide stated this is all the coverages they offer for this type of policy.

Thanks for the heads up..

[Jeff Bonner]

Donald Stevens is right on.

I am a property adjuster for an insurance company and I can confirm what he's saying. The exposure on your rental is far lower than that of your rental, but if you were able to back into how the ins co's underwriter is arriving at your rate, you'd probably see that 100k of coverage for the dwelling on a rental is much more expensive than 100k of coverage for a owner occupied residence.