Insurance... Home Owner vs. Rental House?

[ultrarunner]

I called my Insurance Agent to let them know I have rented my home... I have had the policy with them since 2005.

To my surprise, the Agent said we should just leave it as is???

I still have my shop with tools and at least one car there... but the house is rented.

Anyone in Insurance see a problem here?

Will follow up with a e-mail just to create a paper trail.

Never met my current agent as the one I had passed away and his book of business was spread out to other State Farm Agents.

 

[Steppenwolfe]

I think you are required to carry "homeowner's" insurance. The tenants will have "rental" insurance. That way, if the house burns down, you are covered.

 

[ultrarunner]

Usually... I would have a "Fire" policy and high limit liability with a rental.

I'm fine with leaving the Home Owner's in place... just didn't want any problems should there be a claim.

 

[Beltzington]

Usually... I would have a "Fire" policy and high limit liability with a rental.

I'm fine with leaving the Home Owner's in place... just didn't want any problems should there be a claim.

Ask them what happens if the renter burns the house down and have them put that in writing. I bought a home for my parents and my insurance company (USAA) said I would need to treat it as a rental property although they are not paying rent. Call another insurer for a quote, explain the situation and see how they want to insure it. My cynical side thinks your "agent" is just lazy. Good Luck!

 

[TractorNH]

Usually... I would have a "Fire" policy and high limit liability with a rental.

I'm fine with leaving the Home Owner's in place... just didn't want any problems should there be a claim.

There's a lot more that can happen than a fire. You still want all the same coverages in place as if you lived there yourself but I agree, there should be some difference with the liability coverage. You will want to maintan some "contents" coverage as well to cover everything you're leaving there incuding appliances. The insurance itself would probably be more expensive anyway because it isn't "owner occupied" and we all know renters won't take care of the property as if they owned it so there's greater risk.

 

[RNeumann]

How can we give advice for a policy we know nothing about? What does the policy say???? What are you trying to “insure”- Liability? Fire? Flood?

I general, in situations like this, having it in writing is key. “The agent told me on the phone x time ago” legally, holds up exactly nowhere.

 

[LittleBill21]

my agent wouldn't let me keep a regular policy, something about i can't have 2 primary residences. my rental has a fire dwelling policy.

 

[JerryK]

I have always been told that you can only get homeowners insurance on a home you live in. Other homes/cabins/etc....that you do not reside in, is harder to insure, if at all....

 

[Tractor Seabee]

In the past when I rented I was required to show proof of Renters Insurance with a cancellation clause notifying the owner it it lapsed. This makes the renters insurance first payer in event of a casualty covered by both. I have never owned rentals so have no idea what insurance they carry.

Ron

 

[Jim Nelson]

When we bought our current home I called our Allstate agent of 30 years and said I wanted to insure this new home. She asked if we had sold our old home and I said ,no it will be a rental. She said ok but that will require a different policy. I asked what I needed to do and she said nothing I will handle it all from here;
We went 2 years and there was a water leak in bath tub surround that the renter ignored for a couple of months. The damage, with mold, etc came to $17K. I called insurance and of course the agent had never changed the policy.i paid full premiums on both houses all that time and they told me to kick rocks.
I fought them as high up the ladder as I could get but they wouldn't budge so I moved both houses to Farmer's and paid for my education. It cost Allstate a customer with 30 years of home insurance plus several cars but they didn't care. Our new Farmers agent is very happy and so are we. Insurance is a necessary evil but you have to watch them closely.