Water damage at my rental property - Advise please

Salt lake city and Billings, MT · Member since 2019 · 14 posts · 1 vote

I have homeowners insurance , that is, insurance for an owner occupied property but i recently rented my house and i have the same policy(nothing changed on the policy). Now there is a water damage in the basement bath room ,so if i file a claim is there possibility the insurance company will deny a claim if there are tenants in the property. Please advise.

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Bob Okenwa

Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes

You should re-read your policy or call your insurance company to find this out, as there will probably be something in the fine print that addresses this kind of situation. I am not an insurance agent, but one would think that a homeowner's policy wouldn't work for you since you are no longer occupying the residence.

Homeowners insurance typically covers owner-occupied, single-family residences. When your home doesn't meet that criteria because it's being rented out regularly, it's no longer covered.

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Bob Okenwa
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
7y
You should re-read your policy or call your insurance company to find this out, as there will probably be something in the fine print that addresses this kind of situation. I am not an insurance agent, but one would think that a homeowner's policy wouldn't work for you since you are no longer occupying the residence.
Homeowners insurance typically covers owner-occupied, single-family residences. When your home doesn't meet that criteria because it's being rented out regularly, it's no longer covered.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
They will likely deny the claim because you're not fulfilling your obligation to occupy the home.
It's still worth filing a claim and trying.
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Lynn McGeein
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
7y
Read your policy carefully -- usually they have it online under your account if you can't find a hard copy at home. For instance, one of mine allows 30 days' vacancy, one is 60 days' vacancy. I don't know what it is for how many days' notice of change in status (like occupied to rental). If your "recent" change to rental is within a time period allowed by the policy, then you can breathe easier calling them. If not, I'd weigh the cost of the repair with the possible effect of the claim that could be denied, which may then harm your chances of decent rates moving forward.
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