Q&A: Home Insurance?
Question by VeryFunnie: Home Insurance?
I plan to turn my first single home into a rental property. Do I need to report the insurance that I will not live in that house?
Best answer:
Answer by brewmaster_ga
Yes, you will and actually your premium may go down since oyu are no longer insuring the contents.
Give your answer to this question below!
I would. You should also inform your tenants that they will need to buy personal property insurance for their belongings. Don’t and you could be held liable for loss if something happens.
Yes, your insurance may go down.
Make sure to inform the renters they might want to consider renters insurance as your policy will only cover the dwelling but not the contents inside (the renters property). It’s free to get a quote, and generally it’s inexpensive.
Yes, you do, and you also need to inform your lender. Your insurance will go up and you will probably need more liability insurance. Don’t try and scam your way out of it by not telling the insurance company because if you need to file a claim for damage and they find out you didn’t tell them you turned it into a rental, they will not pay on the claim.
You could have a clause written in your rental agreement that the renter must carry renter’s insurance for their contents and/or medical liability. But the insurance for the structure and property would still be your responsibility. On the plus side it should be considerably cheaper for you. Adjust your rental rate accordingly to recoup the expenses.
Yes. And I am not sure what the other answerer’s are smoking, but I want some. Your insurance premium will definitely rise since it will no longer be owner occupied. You will likely want to change your coverage around a bit too since the situation will change (like increasing medical for the sake of injury on the property but decreasing personal property since it won’t be your stuff). At your option, you could require your tenant to carry renters insurance to cover their personal property.
You definitely need to notify your insurance company. The property will no longer be owner occupied & they can deny a claim. You will need to get a DP3/landlord policy. Your rates WILL NOT go down because the risk is higher. No one will take care of you home the way you do. Tenants increase the risk.
Also, you would Never be liable for the personal property of a tenant (except if you were completely negligent). However, as a landlord I would require your tenants to carry a renters policy simply for the Liability portion of the policy. Liability is the coverage that protects you from you tenants or your negligence. Like, if you were at your property one day to do some yard work & left the hose out on the sidewalk & the postman trips over it. He would probably sue you. Liability covers that. I would suggest no less than $300,000 per occurance. It’s usually pretty inexpensive (around $40.00 a year) to bump it up from $100,000.00 to $300,000.00.
FYI: The insurance company probably would not deny the claim but after the claim was closed they would most definitely set you up for non-renewal. That looks very bad when shopping for a new company. One of the questions will be: Have you ever been non-renewed & why?
Hope this helps
Yes, it’s a different type of policy. It there was a loss & you had moved out it wouldn’t be covered. You may want to try a website that compares multiple companies at once to get you the best price. I am paying less than ½ after I did.
Go to: http://www.insureme.com/landing.aspx?Refby=616162&Type=home
Take care,
Casey
I totally agree with Punk Rock Gurl. Stay off that risk. It will cause you nothing but heartache. Something better will come along. It just wasn’t meant to be.
Don’t get me wrong, as an agent I would love to write a policy for this house. The commission alone would pay for my kids braces. lol
Seriously though, stay away…