As the homeowner, is insurance cheaper listed as a rental or as a second dwelling?
Monday, June 22nd, 2009 at
5:32 am
Sandy R asked:
I have two homes, My son lives in one and I live in the other. Is it cheaper on the one my son lives in to insure it as a second dwelling or as rental property?
I have two homes, My son lives in one and I live in the other. Is it cheaper on the one my son lives in to insure it as a second dwelling or as rental property?
Tagged with: Dwelling • Homeowner Insurance • Insurance
Filed under: Homeowners Insurance
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second dwelling although if you lie, it may make your insurance invalid
It depends. Do you want the insurance company to actually PAY OUT if it burns down? IF so, you’ll have to list it as a rental, as YOU don’t live in it. Your son, is NOT YOU. You can’t call him, “household member” and voila! it’s owner occupied. It doesn’t WORK that way.
It’s NOT a second dwelling. It’s a rental property. Even if you don’t collect rent on it.
As to which costs more, it’s pretty much a tossup. Usually, the rental doesn’t have any contents coverage, so that makes it cheaper. Usually, the secondary dwelling doesn’t have LIABILITY coverage, so that makes THAT a bit cheaper.
But if the claim is denied because you lied about the occupancy, it’s going to be damned expensive.
Sandy R, Home insurance is actually very flexible. I don’t understand all the details of my policy, but my home insurance agent is always helpful. Try calling your agent or a agent in your city. They will be able to help you.