Does Homeowners Insurance Cover My Rental Property?

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Homeowner’s insurance policy is for the place you live.

Your rental property needs a separate type of policy. It’s called a Dwelling Fire policy.

A Dwelling Fire policy, (or rental property policy), is going to cover many of the same risks that your homeowner’s insurance policy covers.

It’s going to have coverage for the building itself, it’s going to have coverage for any buildings on the property that aren’t directly attached, loss of use coverage, liability coverage, and medical payments coverage.

There are some unique coverage differences and the pricing’s going to be a little different because you don’t live there.

Living in your rental property are individuals who are not fully invested in its longevity and sustainability. They’re renting it, which traditionally means higher frequency of claims than homeowners insurance. This can lead to slightly higher insurance rates on rental property insurance than homeowners’ insurance.

Otherwise, the policy looks and feels similar. It’s different, but it’s similar.

Homeowners Insurance Is NOT Rental Property Insurance

If you have a homeowner’s insurance policy on a property that you are renting, there’s a very good chance that that, it there’s a loss, the homeowners insurance company could deny claims.

I’m not saying they will, but they could. You have to look at the specific exclusions. It depends on the carrier. It depends on your relationship with that carrier and it also depends on whether you were being nefarious.

What’s important for you to know is that rental properties, properties that you own, that you rent to other people have a specific type of policy. It’s called a Dwelling Fire policy.

You need this policy in order for your property to be properly protected.

The Take Away

There are carriers that specifically write this type of policy and you want to make sure that you’re working with an insurance agent who understands all aspects of these companies.

Now you want to shop these policies out to carriers with expertise in rental properties.

If we aren’t your insurance professional, we should be! 


I look forward to introducing you to a new way of viewing your personal insurance program.

Thank you,

Matt Barber

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