Do you need to insure your home when renting legally. I know you should but I was just wondering?

Question

I just found out that my insurance company has stopped insuring my property and now I am wondering what is the least insurance I can get by with and still be insured for the property. Any help would be great. Thanks

Answer 1

It's not entirely clear from your question, but I'm assuming that you are the property owner (landlord) rather than the renter.

So the answer is an emphatic "YES!"

As a landlord, most states seem to assume that you are independently wealthy, and that you are deliberately evil. You wear a black cape and top hat, have a handlebar moustache and enjoy throwing widows and orphans out into the snow (even if your property is in Florida).

In short, you are a lawsuit magnet.

Additionally, you have renters living in your property. While most renters are great folks, and will try to be as careful with your house as you would, some are not, and you won't know which kind you've got until there is an emergency.

Do they have 5,000 watts worth of Christmas lights going through that worn out extension cord? Are they heating the house using a barbeque in order to save electricity?

And then there is liability. When the neighbor kid playing basketball in the driveway trips on a crack in the concrete, who will pay the medical bills? Probably not the renter.

You should look at having replacement cost insurance for the property, and a big chunk of liability insurance as well.

Talk to the company that insures the home you're living in, and see if there are ways to reduce the cost of insurance while still protecting yourself against major loss. One way is to increase the deductable, essentially self-insuring for small things. (You probably won't bother to make a claim for a broken window anyway.)

You should also consider talking to a lawyer about just how much liability insurance you should carry.

Answer 2

Not sure if you're the renter or owner so I'll answer both ways.
If you are the owner and renting the property out, then yes, your mortgage company requires you to have insurance on the property. Your company may have dropped you if they learned that it was a rental and you hadn't disclosed that to them. Usually investment properties are slightly more expensive to insure since the it's not a primary residence. Depending on the value of the property you can probably get a cheap policy for a couple hundred dollars a year.
If you are the renter then it's not required that you have renters insurance but a policy is pretty cheap say $130 a year and will cover your belongings in case of fire or theft.

Answer 3

is this property that you own but are leasing to someone else? Is this property that you are still paying for? then yes, if you are still paying a mortgage then you are required by the lender to keep an insurance policy on the property until the mortgage is paid off. But it is wise for you to keep insurance on the property anyway--renter's insurance that the renter takes out only protects their personal property, not your real estate or building.

If you are renting from someone--you are not required to have renter's insurance, but it is wise to have it. renter's insurance is very inexpensive and will pay to replace your personal property in the event of tragedy--renter's insurance DOES NOT cover the actual place you are living or the property that it is on--that is the landlord's responsibility.

Answer 4

The Landlord is responsible for the buildings insurance. This is cover in case it burns down or the roof blows off and also covers 'fixed' things like bathroom and kitchen. If I remember rightly you can get cover which just covers the fabric of the building minus glass and kitchen/ bathroom cover. This is slightly cheaper but not worth the risk in my opinion. The tenant is responsible for covering the contents, however there is no legal obligation for the tenant to have contents insurance if they dont want to.

Answer 5

are you the owner of the property who is leasing it out or the tenant who is renting the property?

both "need" insurance, but of different kinds.

Tenants have property which can be stolen or burn and can be sued for neglect -- like if a visitor trips over your child's toys and is injured.

Owners can also be sued for neglect, plus have property that can be stolen or damaged or burned.

Either can be subject to flood or wind storm damage.


Usually, the same ordinary homeowner's agent handles both types -- but those tied to one particular company may not be able to write new policies or a specific type of policy [so you might need a new one].

Answer 6

Yes and landlord insurance is cheaper than homeowners insurance! I just change and ended up saving about 250.00 a year.

Remember though they will report it to your mortgage company that the insurance is now a landlord policy. If you have not told your mortgage company(s) they can "call" your policy if it is a stickly a homeowner loan.

Answer 7

Tenant insurance is not all that expensive. Well worth it to protect your belongings (clothing, furniture, electronics, appliances, etc.) Think about how much money you'd need to replace everything if a disaster occurred.

Answer 8

no you don't need to get insurance (renters insurance) but it is a good idea. if your place burns down you will have to replace all your belongings from your clothes to your furniture to your computer. also, what i like about having it is that you get "liability insurance" that covers you if you are sued for something.

Answer 9

You don't have to legally when renting, but it is a very good idea too. You can probably get a half way decent policy for about $150 per year. So worth it.