We have a home that we previously occupied and just moved tenants into. Would you recommend maintaining current insurance or something else?

- I have not called insurance company yet... just a thought I had while waiting for my lunch meeting.

SoTheySay said:

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We have a home that we previously occupied and just moved tenants into. Would you recommend maintaining current insurance or something else?

- I have not called insurance company yet... just a thought I had while waiting for my lunch meeting.

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It is a totally different policy. You need one specific for rentals and not owner occupied. FYI this does not cover the tenant contents so will definitely need a renter's policy.

Dubi is spot on. Need new policy

Thanks! We did require they have renter's insurance, thankfully. Will get on that!

Not to derail, but why require tenants have a renters insurance policy?

Aggiemike96 said:

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Not to derail, but why require tenants have a renters insurance policy?

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So they don't complain to you when some item of theirs is damaged/stolen and your "building" policy does not cover their contents.

For example, if my rent house burns down then insurance will rebuild and include appliances. All the tenant's stuff is a total loss.

I understand that. But why require it? Seems like the tenant would do a risk analysis and determine for themselves if insurance necessary.

I guess it's no cost to the landlord, and helps prevent possible problems later.

Landlord can require what they want. The market will support the requirements or not.

Keep in mind it does not take a total loss to severely damage the tenants stuff. A simple grease fire damage a significant part of their personal items

I require renters insurance of my tenants. Just trying to better understand it.

You mention a grease fire, presumably caused by the tenant. Therefore, they would be on their own to replace their personal items. The landlord policy would kick in to remediate the fire and water damage to the structure.

Here's an argument to require it. If a casualty loss occurs and they are uninsured, they may face a choice between buying new stuff or paying rent. I'd rather them not have that choice. Pay a deductible, buy new crap, and keep the lease going.

Insurance agent here-You'll also want to require that your renters get insurance because of Liability if something happens within the house. Your policy as a landlord will have liability as well, but if there is ever anything that happens and ends up being a grey area, it will help protect you if your tenants have the liability covered through their policy. Most apartments and places require $100k of liability, I would require $500k because it will only cost your tenants around $20 more for 100 to 500 and you'll both be a lot better protected.

Aggiemike96 said:

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Not to derail, but why require tenants have a renters insurance policy?

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You require it for the liability side if they have people over and an accident happens that they are responsible for their insurance will cover it so it never has a chance of falling back on you.