Do I need landlord insurance?

[Gilberto Escobar]

I am house hacking my SFR and about to rent out a room to a tenant. Do I need to get landlord insurance for my property?

[Ryan Ingram]

Hey Gilberto,

That is a great question. The answer is no. But, some explanation is necessary.

Assuming the property is 1-4 units, in the insurance world, this is considered a residential property. 

Anything that is 1-4 units that is owner occupied, needs to be written on a homeowners policy. 

If you were to move out, you would need to change the policy to a dwelling fire (“landlord”) policy. 

The primary difference between the two is coverage for your personal property. A homeowners policy covers the property, liability, and coverage for your personal property.

A dwelling fire policy (“landlord policy”) covers the property and liability, and generally offers no coverage for personal property.

If you reach out to a licensed insurance agent...they should be able to walk through this with you.

This is a common question I get. I’ve made an infographic to help investors. I hope this is helpful.

I’d be more than happy to clarify further, if you have any questions.