Changing Homeowners Ins From Personal Prop to Rental?

[Sue Oberlin]

Hi, I have a home in Illinois that has been vacant and for sale for 8 months. I have tenants that are interested in renting and we are in the process of background screening and verifying references. My question is, I currently have a homeowners policy since it was my primary residence, up until 8 months ago. I moved to Arizona but still own my home in Illinois. When do I contact my insurance company and mortgage co to inform them it is now being rented? Any assistance/guidance would be most appreciative. I am afraid they will cancel my insurance if I am not the primary residence living there?

[Jim B.]

First, I would call and have them adjust the amount of personal property you are insuring at that property, it's most likely still the same amount as when you lived there, unless you've already done this.  This will lower your premiums in the short term.

They will more than likely allow you to purchase a new landlord's policy if your new home in AZ is also insured with them.  I would also highly recommend getting an umbrella policy if/when you have renters in your old house (if you don't already).

They probably won't cancel your policy, but adjustments will have to be made.  Don't be afraid to call and ask.

What company is it you're working with?