Does Homeowners Insurance Cover Having Renters?

Renting out your property can help provide a steady income stream; however, unexpected events can swiftly transform a profitable investment into a financial catastrophe. Whether you currently own a rental property or are considering renting out your property, it is essential to thoroughly research the insurance policies that may be necessary to protect yourself and your investment.

Do I Need Landlord Insurance and Homeowners Insurance for My Rental Property?

A standard homeowner’s insurance is typically insufficient for rental properties, so you should have homeowners insurance specifically designed for rental properties, often called landlord or rental property insurance. Landlord insurance provides coverage tailored to the risks and liabilities of renting out a property. Review the insurance policy’s terms, coverage limits and exclusions to ensure it meets your needs.

What Does Rental Property Insurance Cover?

The following are a few types of insurance coverage you should consider for a rental property:

• Dwelling insurance may help protect the physical structure of the rental property from perils like fire, storms and other covered hazards.
• Liability insurance may help cover claims or lawsuits against you as the property owner. Liability insurance may help cover legal expenses and medical costs if someone is injured on your rental property or if someone else’s property is damaged due to your negligence.
• Loss of rental income insurance may reimburse you for lost rental income if a covered peril makes the property temporarily uninhabitable. During this time, your policy can help you recover lost rental income while the property is being repaired or rebuilt.
• Contents insurance is optional coverage for any personal belongings the landlord owns left on the property for tenant use, such as furniture or appliances.

It’s essential to carefully review different insurance policies and discuss your situation with insurance providers to determine the most applicable coverage for your needs. An insurer may make additional coverage recommendations based on the property’s location, features and age. These coverage options could include flood insurance, earthquake insurance, building code coverage, unoccupied dwelling endorsement, and heating or air conditioning loss reimbursement.

How to Get Rental Property Insurance in Pittsburgh, PA

Rental property insurance is essential if you lease property, even if it’s just a room in your home. Contact James L. Smith Insurance Agency to discuss your property insurance needs. We can make coverage recommendations based on your specific property and its risks.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.