If Renting My Home, What Type of Insurance Do I Need?

When you own a home and purchase homeowners insurance, your policy will cover damage to the home and it will also protect your family if anyone is injured on your property or if you or your family happen to accidentally injure or damage other people or their property. But what if you decide to rent out your home, or perhaps you have purchased a rental property as an investment?  Will your homeowner’s policy cover these two situations?  Chances are your policy will not cover all of these situations.

Homeowners insurance typically covers owner-occupied structures, other structures, all your personal property, your personal liability and medical, higher limits. When you rent out a home, the risk exposure to your home changes. Most owners who rent out their home will have minimal personal property left in the home, usually general appliances such as kitchen appliances, maybe a washer and dryer.  Minimal furnishings mean minimal coverage needed.  Therefore, coverage on your homeowner policy will offer more then what you may want to carry when you rent your home.

When you rent out your property, you will need to purchase a dwelling fire insurance policy.  A dwelling fire insurance policy typically covers your rental unit (the dwelling), other structures on the property such as sheds, the owner’s possessions (but not the tenant’s possessions), lost rental income if the house is damaged and uninhabitable, and some liability protection for the owner in case of injury or a lawsuit. This is a more broad policy to suit your needs as your main interest as a landlord would be to ensure that you are covering your actual home and liability as the owner of the property.

When purchasing a dwelling fire insurance policy, it is important to read all the fine print, as coverage will vary.  To get more information about a dwelling fire insurance policy and other renters insurance coverage, please call 888-772-4247. To get a quote on renters insurance, visit http://www.aisinsurance.com/california-renters-insurance.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

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