In working with many, many of our fine Realtor partners with Allen Tate, I often hear of situations where buyers find their dream home, and instead of selling their current home, they rent it out to a tenant. It’s a great solution to trying to find a buyer and a great way to keep a good investment property when appropriate!

But when the occupancy of a home changes, so do the insurance needs! Homes that are considered your primary residence, the place where you lay your head at night, are written on a homeowners insurance policy to cover the dwelling, your property and liability.

But once you move out, and a tenant moves in, the type of policy and coverage you need on that home changes drastically.  A rental property should be covered on a “dwelling fire” form, often referred to as a landlord policy. It still covers the dwelling, but personal property coverage is much more limited since most of the personal property will now be that of the tenant.  (The tenant now needs their own renter’s insurance policy to cover their personal property.)

Remember: Whenever the occupancy of a home changes, call your agent to be sure that you have the right coverage in place for the home.

By Robin Price