Article Score0

Might be moving out soon and renting my house just wondering how much more does it cost usually to change from Home owners property insurance to insurance for a rental property?

Also I have a home owners mortgage/loan on the property would it be a problem with the bank if I rent out the property (would the mortage interest rate increase or other costs)? Thanks.

7 Thoughts on Cost of Home Owners Insurance vs Rental Property Insurance?
  1. Reply
    Farming Life
    February 28, 2014 at 5:26 am

    I always use this calculator and it keeps me renting 🙂

    http://www.nytimes.com/interactive/business/buy-rent-calculator.html?_r=0

  2. Reply
    Anonymous
    February 28, 2014 at 5:56 am

    You need to talk to your insurance agent about the policy changes. It shouldn’t be outrageously different, but I’d shop around and get quotes just like you would if you were buying insurance for the first time.

    As far as the mortgage, you likely won’t have any problems. The only problem you could face is if you just recently bought the house. When you finance a property as a single family, owner occupied property, you get special financing such as FHA or a lower downpayment that if oyu purchased it as an investment property. If you’ve bought the property within the last couple years, it could look fraudulent to turn around and rent it. If you’ve owned it for more the 2 or have 20% equity, you have no worries. Even if you just bought it, the chances of troubles are low, but possible.

  3. Reply
    chatsplas
    February 28, 2014 at 6:07 am

    As long as you fulfilled terms of mortgage , no problem
    Most require you to move in and make it your residence, generally for a year
    After that, you can rent it out
    Your insurance will cost more for less coverage…..owner occupied properties are lower risk
    Costs will rise significantly, depends on insurer
    Your lease should require that tenants have renters insurance

  4. Reply
    loanmasterone
    February 28, 2014 at 6:15 am

    You might want to check with your insurance carrier as to find out if there would be any additional amount associated with you no longer staying in the house and would be renting the house.

    There is normally a requirement that you reside in the house for a minimum of 2 years per the loan documents you signed from your mortgage lender.

    I have found the mortgage lender would not have a problem as long as you pay the monthly mortgage payment as agreed in your loan documents you signed to obtain your mortgage loan.

    Your mortgage lender would not renegotiate your mortgage loan simply by you moving and renting the house.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  5. Reply
    smedrik
    February 28, 2014 at 6:16 am

    Rental insurance is usually less expensive since it generally only covers the contents and not the building itself.

  6. Reply
    Landlord
    February 28, 2014 at 6:37 am

    You can’t rent it if the mortgage is owner occupied. And yes, investment loans are a little bit more.

    You have to switch insurance, your present insurance will be void if you move out. No- owner op insurance is about 30% more.

  7. Reply
    Raymond L.
    February 28, 2014 at 6:46 am

    No the mortgage rate stays the same. wether you rent it out or not..

    I would take out a umbrella policy to protect you from lawsuits, what if some moron gets hurt on the property and decides to sue you?

    Leave a reply

    Register New Account
    Reset Password