Tenant occupied or standard home insurance

[Rashad A.]

Hi,

I am shopping for home insurance and was wondering whether I really need tenant occupied home insurance. It usually comes at higher cost than standard home insurance. Appreciate if you guys help me understand the cons and pros of having and not having tenant occupied insurance. 

Thanks

Rashad

[Nathan Gesner]

Yes, you need Landlord or Rental Dwelling insurance.

Liability is a lower risk when you occupy the home. In other words, you aren't going to slip fall down the stairs and then sue yourself. A tenant could fall and decide to sue you, so the risk is higher for the insurance company.

If you purchase the wrong insurance, they probably won't cover you even if the claim has nothing to do with who occupies the home. Do the right thing and protect yourself properly.