How to Switch to Home Rental Insurance

A landlord insures the building while a tenant insures the furniture.

Two situations bring about the need to change insurance coverage to a rental policy. One is for the sake of a home you own, but no longer occupy. The other situation occurs when you sell a home and move into a rental home or apartment. A true homeowners policy is written to cover the home and all belongings within. Landlords use building insurance to cover the structure since tenants are responsible for their own belongings. Renters insurance policies that cover belongings are available for tenants.

Instructions

Switch to Rental Property Policy

1. Contact your insurer to report the change in needed coverage on your home. Cancel your homeowners policy and ask for a return of all unused premiums.

2. Ask your current insurance provider about building insurance policies available for homeowners of rental properties. Some companies make different levels of coverage available to customers who want to insure a building against damages.

3. Shop for building insurance with many insurance carriers. Some are more comfortable insuring rentals and you will find a huge difference in the cost of building insurance between the different companies. Select policies ranging from three months of coverage to a full year for rental properties.

Switch to Renters Policy

1. Call your insurance carrier to inform them of the sale of your house. Cancel the homeowners insurance you carried and request a return of all unused premiums.

2. Prepare a list of all your personal items and note the cost to replace each. The replacement cost may exceed the actual value of the item in the interest of claiming its replacement cost. A computer that is only worth $200 today may cost $500 to replace with an updated model.

3. Shop for renters insurance with multiple companies and compare rates. Check with the company that carries your car insurance to see if you get better rates through a multiple policy discount. Give the agents or representatives your list of items and replacement costs, and get rate quotes to decide on a carrier for your renters insurance coverage.

References

• InsuranceQuotesFAQ: What's the Difference Between Home Insurance and Rental Insurance?
• The Money Alert: Renters Insurance for Retirees
• American Modern Insurance Group: Rental Property Insurance