Insurance on Rental Property

[Brandon Ingram]

I just completed my first deal for a buy and hold property that I am looking to rent out. I have a regular homeowners insurance policy on the property, do I need any additional insurance?

[Alex Williams]

I'm an agent in IL, and I always ask clients what their real estate investing plan is. Some carriers will provide you a rental dwelling policy on a form called a DP3. Other carriers will write a commercial policy on either a business owners policy (BOP) or as a commercial package policy.  The big difference between the two (personal vs. commercial) is the ability to list multiple properties on one policy. A commercial policy will allow you to list all properties on one policy where a DP3 policy will not. This is important at claim time, think about one hail or wind storm doing damage to multiple units, and now you have to manage a different claims adjuster for each property. Also, as you grow the business, the billing on multiple properties with their own individual policy will be hard to follow. @Jason Bott They will deny the claim if you don't make a change. Contact an independent agent or broker who knows rentals - They will be able to help you.