I’ve started renting out my house. Do I need to tell my insurance company?

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Asked October 15, 2015

1 Answer


Your home insurance needs are different if you live in a home or rent the home. Additionally, if the home sits vacant for a period of time it needs a different type of coverage than it would have if it were occupied by anyone. The inhabited status of the home is very important for your insurance company, and will also have an impact on both what you pay and how well you are protected.

If you live in the home, you need an insurance policy that covers your property in the home. If you rent the home to someone else, you have lower liability requirements and no reason to cover personal property. Instead, you should pick up a landlord insurance policy. This would cover the dwelling, other structures on the property and your liability as the landlord but would not provide coverage for the property or liability concerns of your tenants.

If you do not tell the insurance company that you are renting the home, you will be buying insurance coverage you no longer need. Only provide full homeowners insurance on the place where you actually live, and use reduced coverage such as landlord insurance for your rental property. Since a rental can be considered an income earning investment, you should also purchase a large umbrella policy to provide complete liability coverage on all of your property, preventing someone from taking your assets by filing a legal suit against you.

If you do not tell the insurance company that you are renting the home but the situation comes to light, you could see your policy canceled, and any claim you file against the policy denied. Insurers provide specific policies for different living situations in order to match the risks and provide accurate premium billing for all customers. If you inaccurately portray a property you own, it skews the statistic for insurance companies has the potential to drive up rates for everyone.

Answered November 2, 2015 by Anonymous

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