If you plan to rent out your property to a tenant, you’ll need to change your home insurance to dwelling property insurance. You have to change your policy because you aren’t residing at your property. While you need coverage that will protect your rental income in the event of a loss, you also want to ensure that you aren’t buying coverage for your tenant’s personal items.

Why Get Dwelling Property Insurance?

Dwelling property insurance is ideal for landlords because it can be customized to fit their unique coverage needs. It will cover any appliances or permanent fixtures that have been rented out. If a potential claim prevents you from renting out the property, dwelling property insurance can cover the lost income based on fair rental value protection.

How Much Coverage Do I Need?

Dwelling property insurance protects you when you decide to rent your property, or your property requires unique coverage. While it will cover your roof for its actual cash value, any other structural damages will be covered at their replacement cost.

Make sure that your insurer is aware of the duration you plan to rent out your home, the amount you will rent it for, and any other activities that will be undertaken while it is unoccupied. The more details you provide, the easier it will be to find a policy that aligns with your needs.

Dwelling property insurance may cover personal items in some cases. Nonetheless, your tenant should purchase renters insurance to cover their personal belongings against potential damage. Dwelling property insurance may cover any appliances you provide to your renters, such as a microwave, oven, dryer, or refrigerator. Normal wear and tear to these items are not covered through the policy, nor is any damage caused by your tenant.

Dwelling Insurance Vs. Home Insurance

Generally, basic home insurance coverage does not protect rental properties. Once you decide to rent your property, it becomes similar to a business asset. Moreover, you expose yourself to additional risks because tenants generally don’t maintain their rented property as a homeowner would. Therefore, you need separate dwelling property insurance to protect yourself from future losses and claims. However, if you reside at your property periodically, you may add an endorsement to your home insurance to cover occasional rentals.

Consult with Scautub Agency

Finding the right coverage for your rental property can be complicated at times. Dwelling property insurance will help you protect your investment the right way. If you have any questions about your rental property insurance, contact our insurance professionals at Scautub Agency today!