Could I buy the Home owner insurance policy for the rental house?
Wednesday, May 20th, 2009 at
11:51 am
Binh T asked:
I have a second house and I will for rent could I keep the home ower insurance policy or have to change to the lanlord policy?
If I change to the Landlord policy does the lender accept it?
I have a second house and I will for rent could I keep the home ower insurance policy or have to change to the lanlord policy?
If I change to the Landlord policy does the lender accept it?
Tagged with: Home Owner Insurance • House Rent • Insurance Policy
Filed under: Homeowners Insurance
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No, because of tax purposes, only the home owner can purchase insurance for house itself (unless you are the home owner and are refering to your own rental income property…then by all means insure it!!) It depends on what state your in too. Call your insurance company and they will advise you to what your legal options are protecting your properties. Most lenders will accept the coverage to ensure their investment.
If you are the renter, you can get renter’s insurance very inexpensively to cover the cost of your personal belongings.
no tax on it
In TX through Farmers you must get a landlord policy. If the insurance comp finds out someone else is living in the house they will not pay out if anything happens and could quite possibly cancel both your policies. It would benefit you more to get the landlord policy, it might cost more but will definitely cover if someone other than you is living in it. If you are renting it out to a stranger you have to have the landlord policy, if immediate family is living there you can keep the regular homeowners.
Homeowner insurance will only cover owner occupied dwellings. It will not pay should something happen to it while rented. Nor will it pay if the home is vacant over 30 days.
You will need a landlord’s policy if you rent it out. Landlord policies have limited personal property protection, usually only enough to cover appliances. If you rent it fully furnished you will need to increase the personal property coverage. Most major insurance companies will also provide landlord’s coverage.
EDIT to your additional details – yes, lenders accept landlord policies.
You have to modify your coverage.
you could-but it would cost a bit more. certain things wouldnt be covered (such as contents) damaged by a covered loss that belongs to the renters, not you. however-regardless if you had a llp or a homeowners policy, and there was damage to the roof for example-it would be paid either way