Landlord insurance, should I get it?

Question

I am in the process of renting out my home. Any suggestions on landlord insurance?

Owen Rosen · Answer

Not sure what you mean by incidentals with a person?

If you have owner-occupied homeowners insurance now, move out, and have a tenant in the property that does not own it, your homeowners insurance will not pay in the event of any claim. No matter what type of claim.

The only way you'll get paid is if the insurance company decides to pay even when they do not have to. That's unlikely.

You need to inform your insurance agent that you have a non-owner occupied home (and explain the type of tenant ie long term, short term, etc. Once you do that, they should be able to arrange the proper type of coverage.

Michael Koeplin · Answer

I'd start by making sure the policy matches how the property will actually be used.

A lot of owners think "landlord insurance" is one category, but there can be important differences depending on whether it's a long-term rental, mid-term rental, or short-term rental. The biggest problems I see aren't usually with the carrier. They're when the property's use changes and the policy never does.

It's worth spending a little extra time with your agent up front so there are no surprises if you ever have to file a claim.

Tamara Kilgore · Answer

Candice, if by landlord insurance you mean rental property insurance, I'd say 100%. I would suggest that you start with your homeowners insurance company. That may be your base line for coverage and rates. Most importantly, remember to require your tenants carry renters insurance.

Candice Coates · Answer

@Owen Rosen, I was thinking of using my regular homeowners' insurance, but I know that doesn't cover incidentals with a person. I opened an LLC to separate any liabilities from me, but from what I am seeing, that's a little difficult to do with one property. I was even thinking about opening a living trust as well.

Owen Rosen · Answer

When you ask should you get it - what else are you considering?

Candice Coates · Answer

That is solid advice! Thank you @Michael Koeplin and @Tamara Kilgore

Landlord insurance, should I get it?

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