When you own a home and purchase homeowners insurance, your policy covers damage to the home and it also protects 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 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 policy is geared to suit your needs as a landlord.
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 one of our AIS Specialists today. To get an instant quote on renters insurance, please visit our webpage here.
The information in this article was obtained from various sources. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage 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.