Rental Property Insurance

I recently bought a house and repaired it and was unable to sell it. So i rented it out. Do i need to get a different type of insurance on the house and let the insurance agent know, or can i just leave it as is. My current insurance only covers damage to the house, and no valuables inside. Any comments would be appreciated.



You should probably notify the insurance agent but I would NOT insure content! You should have a clause in your rental agreement that emphatically states that you pay insurance on the structure only and the renters understand that by signing the lease are responsible for the insurance of their own possessions!

In that the property is inhabitated, there may be a slight change in the insurance rate.



I agree with Keith. Give your insurance company a call and let them know it is a rental. The premium will only be slightly (not more than $100/year) more than an owner occupied premium if any. It will also prevent the insurance company from giving you a very difficult time with a payout should something happen to it and their records show it as owner occupied.

Also, all of my leases have the information that the structure is the only part of the home covered and that the tenant is responsible for obtaining renter’s insurance. At move in, I always provide an information packet to my tenants that contains a pamphlet and card for my insurance agent just in case the tenant doesn’t know who else to call for insurance. Some property management companies require a copy of a renter’s insurance policy upon lease signing.

Thank you for your imput. I am going to go through the lease and make sure there is a clause in there. I obtained my lease off of the Business lawyer/family lawyer CD. It had a pretty good lease that i used. I will check with my insurance company. One thing though…Will they send something to my financial institute? When i bought the house it was bought as an owner occupied (Planning to fix and sell) then when it didnt sell, i moved in with my g/f and rented it out. Will my bank say anything about this?

I’ve had many properties that were originally purchased as OOs convert to rentals. As long as you’re making your payments on time and you insure the property for enough to pay off the loan in case of a loss I can’t imagine them saying a thing.

A landlord policy should cost you less than homeowners insurance. I’ve had excellent luck with Farmers lately on my landlord policies in multiple states.

Karla in Amarillo

Andy, I’m with everyone else here. Watch out for the sharks too! We just refinanced a property and the lenders wanted a $130/year add on for “rent insurance,” like any landlord in Georgia would use that (it would make us virtually uninsurable if we made a claim). So I asked for proof from the lender, in writing, this was what they required – nothing came forth and it was removed. Just be smart – if it doesn’t sound right, get it in writing. Well, get everything in writing – but questions ALL.

If you intended/did occupy this property, purchasing a homeowner’s policy was ok then but if it is now a rental, you should be changing the policy to a landlord’s policy. If you had a loss, the insurance company could deny the claim, as it is no longer owner occupied.

A landlord policy will cost you more, as you’d now be covered for tenant’s damaging the property, the tenant can sue you for liability claims & you no longer have control over who comes and goes at your property.

Good luck!