Needing a lease for landlord insurance

[Tom Gersic]

I recently purchased a property and purchased landlord insurance. The property needs some repairs before I can rent it, and I’m in the process of having those repairs done. The insurance company is saying they need proof of a lease in the next 30 days or they will terminate the coverage. The agent told me to “just make one up... find a form on the internet and fill it in”. This sounds like a terrible idea to lie on an insurance form. The agent says not to use homeowner’s insurance, though, because I’m not actually living at this property. Any advice? I’m not sure what the best course of action is. It might be rented in 30 days, but I can’t be sure of that. I’m in Illinois if that has any relevance.

[Casey J Burkhead]

Hi Tom,

You're right, that advice your agent gave you is terrible.  If a claim were to happen while the property is vacant and being renovated/repaired, the insurance company would not cover it if it's insured on a landlord policy.

You need to purchase a vacant property policy.  Most companies have a minimum earned premium of 3-months for this type of policy but at least you can be covered properly until the work is completed and you have a tenant in place.

I would call an independent agent and get some better options.

- Casey