Whats the difference between home insurance and rental insurance?
Sunday, July 26th, 2009 at
4:11 am
Magnix2k asked:
for my rental property? Is it a good idea to switch home insurance to rental insurance when a tenant is living in my rental property just in case if they smashed some holes on the wall, or some damages on the property?
for my rental property? Is it a good idea to switch home insurance to rental insurance when a tenant is living in my rental property just in case if they smashed some holes on the wall, or some damages on the property?
Thanks!
Tagged with: Holes • Home Insurance • Rental Property
Filed under: Homeowners Insurance
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Insurance on your personal residence covers the house and contents. A fire policy on rental property only covers the structure, but not the tenant causing damages. That’s what the security deposit covers.
I know of homeowner’s insurance which covers the owner’s property, and renter’s (not rental) insurance, which covers the renter’s property. You should inquire with your home insurer to make sure your current policy is the best one for your needs.
If you have a mortgage, you are required to maintain homeowner’s insurance. Renter’s insurance is something your tenant chooses to get on their own.
home owners protects you the home owner.from loss..just insure it as a rental. If the renters want to protect their stuff they need renters insurance.
You definitely need to switch your coverage if the home is not owner-occupied.
Insurance on your rental property is much reduced from the coverage on your home. There is much more risk with a stranger living in it. It costs the same but covers less. It covers accidents but a hole in the wall is seldom covered. Fire would be covered.
OWNERS get home insurance to cover the structure and the property incase of fire and things like that.
TENANTS get renters insurance to cover their personal belongings.
If a tenant puts a hole in the wall THEY have to pay for fixing it – that would have nothing to do with any insurance anyway.
You need to change or they will not pay if you have a claim.
Holes are not covered, neither is most tenant damage.
But, you still need fire damage, weather, etc etc.
Also, if you are going to allow animals check your policy, they are not likely to cover your property if you allow any dangereous animals.
No. You are the property owner and need home owners insurance. If your tenants cause damage you will be covered under that. Your tenants need rental insurance to cover their own belongings in case of a fire.
I am a landlord AND an insurance sales rep so I have experience from both sides of the situation.
You couldn’t get “renters” insurance because that is the coverage a tenant gets to cover their belongings, it don’t cover the home.
Now you don’t need “full” home owners insurance. It is a waste of money on your part. If your personal home burns down you need coverage on the home and your contents inside. If your rental home burns down, what do you need covered? Just the home, not the contents. As a landlord you are NOT responsible for the tenants contents. You need to reduce your home owners policy to only structure coverage. It will cost much less and is best when it comes to responsibility, if something should happen.
You should contact a company like State Farm(they pay claims really well), Farm Bureau, American Family(although I personally don’t care for them and how they pay claims). They are going to have more knowledge on what you are looking for.
I have State Farm and I am renting my home. I have switched my policy to reflect that I am now the landlord. The tenants have stolen things from my property, including washers and dryers and some antique crystal doorknobs. They are supposed to be moving out today. Will my State Farm policy cover the items they have stolen with the deductibe that I have to pay of course?