Many property owners are unaware and under the impression that when you rent your house, or your condo, to a tenant you need to switch your home/condo insurance policy to a landlord’s policy. If you keep your homeowners coverage, rent your property, and then you have a claim, it is possible that the insurance company would deny you the coverage. The homeowners/condo policy by definition is meant to be an owner-occupied residence. There are some additional coverages that you need as a landlord and only a landlord’s policy can properly protect you.
Make sure that your tenant obtains a renter’s insurance policy, which will protect your property in the event that it is damaged by the tenant. Most renter’s insurance policies have $100,000 of liability coverage included and that’s the coverage that will pay for the damages that your tenant can cause to your house/condo. It is a good idea to make it a part of the lease requirement for your tenant to get a renter’s insurance policy. For more great ideas on how to properly protect your property, your liability, and to get a free quote, call our office and one of our agents will be happy to assist you: (703) 888-3555.