I recently rented out my home that I occupied for four years. I still have the same insurance on the home that I had when I lived there. Is there anything to be said for changing the policy to a landlord type coverage to reduce the price? Any input is appreciated.

 

I am pretty sure you have to change it, and the price is higher, not lower.

Check with your Insurance agent to be sure, may vary state to state.

 

Because it is a single family, I think it will stay
the same.

 

I have a secound home in NJ and I rent it out and as it's not my primary residence the insurance went up and I called alot of insurance co

 

Not sure but htinking out loud...

You'd think it would go since since you wouldn't be liable for their personal property and you no longer have property in their to protect. But if they don't have personal health/medical coverage, it may keep your rates up there?

 

your home is no longer owner occupied so you need to change it

the higher rates are due to historically renters don't take as good of care of a property as an owner

check with your agent ASAP, depending on your State and insurance company you might not have any coverage at all since you don't live at the property

 

from New York here my friend:

THEY are required to get renter's insurance as YOU are not liable for their safety or personal property.

YOU have to (some states) get commercial insurance as it is income driven.
As above, good advice and yes! it costs more but you have better protection with some simple problems that normally would be a hassle for private insurance.
A good thing to do is to contact the building inspector or fire inspector in your area and get a free annual inspection of your property, or even after each renter change. Put in devices such as remote monitor alarms for water, freeze, etc; carbon monoxide detectors, hard wired smoke detectors so no one can cause them to be inoperable, padlock access to utilities for safety, use motion lights, etc. take photos!! adjusters need to know what you are doing and seeign a condition of the property. then your insurance rates come down over each six month period as you can now have a 'record' of upkeep and minimal renter damage. Also covers your butt if you get a 'bad' renter, avoids the subjective damage issues.( He said, she said types of damage claims)

advantage legally, in my opinion, if you want to rent this house out for more than 3 years- get it in a seperate business name. that way, your insurance is limited at low cost and any claim can only go to the limit of the policy. no one can go after your personal value. IRS benefits, more payback on your investments or improvements, etc....

more info than you wanted, but i talk fast...

 

You better check your mortgage paper work......some require your the house to be your primary residence.........this won't technically allow you to rent it.

 

I'm moving soon and have been seeing this a lot around here, I'm sure other states are different, but property tax is based on owner occupancy. So your taxes go up as well if it is a rental.

Just a thought.

Have a good one.

 

Double check the laws in your state. To answer your question, if the laws allow, yes you can change your policy to a "fire/dwelling" policy which covers the structure. You no longer have personal effects/items and wouldn't need this coverage. Yes, renters insurance is recommended for the new occupant. Your insurance agent s/b able to answer this question w/out a doubt.

 

All good advice above, change it and it will go up more than likely but you will be covered. While you arent insuring any of your personal property or the renters it is no longer owner occupied. You may want to require the renters to have renters insurance to protect their personal property but their renter insurance wont cover your house just their property in the house.

As mentioned you may want to check your mortgage but more than likely they dont care unless it is a new mortgage in which case it will probably cost you an extra 1/4-3/4 points in interest again because it is not owner occupied but income property. Done several rentals over the years and that has been my experiance.

 

and just who requires them to have renters? I am an insurance agent in NY . Renters unless by zoning of the town is Not required by New York state Insurance law . You do not even need homeowners if you don't have a mortgage.

To the OP get a Landlords policy and also check with the mortgage company. And I would make them purchase renters as a stipulation of the lease with you named as an Additional interested party on the policy this doesn't afford you any protection from their policy but you will be notified of cancellation or lapse

 

You're picking the wrong lady to bite the head off of!

I'm pretty sure she meant that the renters were required to get insurance if THEY wanted coverage and that the landlord did not have to insure the renters property or safety.

 

Every mortgage I've had said that, but bottom line, if they're getting their check every month, they appear not to care, although I've never formally divulged to them I was renting the house out. Officially you can keep your mortgage, or re-fi it, but the interest rate will go up not being a private residence. CHecked this "hypothetically" with the mortgage co.
That said, both times I rented a house out that I had a primary residence mortgage on, I had the insurance changed to liability and structure only, renters resp for their contents, may be different if renting furnished.
Insurance co didn't care what my mortgage said, I asked, and they even sent the new policies to the mortgage co as they're req to do with no backlash from the mortgage co.

 

My mortgage says specifically that I am required to be the primary tenant, and that I cannot rent it out. I have not spoken to them about reating it out. I just want him to make sure his butt is covered.