We all know we need homeowners insurance for our property but if you are an “accidental or unintended landlord”, meaning you moved and decided to rent your home or you are just new at being a landlord, you may be unfamiliar with the different types of policies available to you.
True or False – Your homeowners insurance company can deny coverage for a loss at your home if it is now a rental property
Answer: TRUE
Make it a priority to look over your homeowners insurance policy because it’s very likely your existing policy doesn’t cut it anymore. Most policies cover owner-occupied homes, and yours no longer qualifies. What does this mean? It means, the insurance company can deny coverage unless you have the proper policy. Of course there are various policies to choose from that cover standard losses in addition to equipment breakdown, loss of rental income, and accident liability so make sure to discuss your options with your insurance professional. Taking action now will ensure that your rental is properly covered.
One other word of advice: Make sure your tenants have renters insurance to cover their own personal property.
Watch for next week’s follow up blog:
The Difference Between Homeowner’s Insurance and Landlord Insurance
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So true! If you rent out your home, you should make sure that update your rental insurance to be sure it covers burglary, natural disasters, fires, etc. and issues/lawsuits you might have with tenants. Always better to be safe than sorry!
Renting out a property comes with it’s benefits and drawbacks. One of the things you need to be sure of is check what insurance you have. Like you said, your homeowners insurance company can deny coverage for a loss if the property is now a rental. If I was doing that, I’d be sure to go over the policy and see about changing or adding something to it.