If not, who pays for my rental property house if it burns down?
I need some kind of insurance right?
I currently still have HOI for a property that has been a rental for a few months. And it costs at least $1000, so I am trying to see if I can adjust/cancel it.
You need to speak to your insurance agent and let them know that you have a tenant living at the property. They will give you options for landlord insurance. You HOI policy may or may not cover you if you are not the occupant.
Same thing with vacant homes...... You might have a HOI policy on your real estate, but if it burns down while its vacant...... They will likely not pay.
As @Pavel Shemyakin said, you need to talk to your insurance agent who will get you the correct policy. You should have structure insurance with replacement coverage and liability insurance, the higher the better. The only thing you don't need is contents coverage, which is the responsibility of the Tenant. If you have a loan on the property, the lien holder will require fire structure protection at a minimum.
Ok, I will adjust my HOI, thank you. Should it be higher or lower with tenants? My current 6 month is $1600 for a $370k house with $271k replacement value.
A) it should be lower. As no personal property inside the building is covered, tenants should get renters insurance
B) that’s is INSANELY high. I pay less than $600 a year for $300k properties with 300/300 limits with an expensive name brand provider. Look for another quote, or three.
C) in MOST situations replacement value/cost should be higher than current value.
You need Landlord insurance which has minimal contents coverage. This is the tenants stuff. They should have renters insurance.
I would definitely get a landlord policy right away, if something were to happen right now, they would not cover you! A landlord/dwelling fire policy is what you need, and yes it will be a little more expensive than what you are paying now.
Definitely need to transition your HOI to a landlord's insurance
If you probe your agent then you may pay a little lower than you are now. For example, if you, say, put a fire extinguisher in the house and there are other things you may be able to do to lower your premiums.
Just ask the agent.
Good advice here but please also don't forget to require your tenants to carry liability insurance. This is included in most renters insurance policies but can also be purchased as a standalone policy that does not cover the tenant's personal property.
The correct policy for a rented house is a Dwelling Fire policy. Some companies have their own version that they call a Landords policy.
Generally I find that the Dwelling Fire is higher than the Homeowners cost. Its has to do with expected claims and higher Liability costs for a rental.
The pricing varies widely between companies so you want to shop it with a couple of Independent Agents who represent multiple companies.