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My girlfriend and I are in our late 40’s and we both own our own homes. She has moved in with me and we now rent out her home for additional income. She still has the homeowners policy in place that she’s always had on the home and I’m concerned it’s not adequate or not the type of policy she needs to protect her now that she no longer lives in that home.

We live in North Carolina. Any advice? I’ve been telling her she needs to talk to her agent but she’s not done that yet. I figure she just doesn’t want to deal with it but it’s a big worry to me.

Do she need some other type of policy now? Will it cost more or less than her current homeowners policy? What do we need to tell her agent about the current status of the home if anything?

I’m really not sure what all type of questions I need to be asking here really. Anything you can tell me will be a big help and please be as detailed and specific as possible.

Thanks so much!!

4 Thoughts on What to do about homeowners insurance on a home we now rent out?
  1. Reply
    Caveat Emptor
    June 21, 2011 at 11:37 pm

    You are correct. She needs to change the insurance coverage on her house. She needs to “deal with it” immediately.

  2. Reply
    June 21, 2011 at 11:40 pm

    SHE rents out her home.

    You are absolutely right, a homeowners policy is ONLY for “owner occupied” homes. She needs to switch to a “dwelling fire” policy. Depending on her coverages, it could very well cost less.

    HOWEVER. She ALSO needs a “tenant homeowners” policy for where she’s living with you – she’s NOT covered under your homeowners policy, and neither is her stuff.

    Keep in mind . . . usually it’s cheaper to add the liability for the rent house, to her renters policy, than it is to add it to the dwelling fire policy. Her agent should be able to write BOTH policies.

  3. Reply
    June 22, 2011 at 12:30 am – try this one. Got my home insurance from them. As I know they provide such a service.

  4. Reply
    June 22, 2011 at 1:01 am

    Yes, she needs another type of policy. It will probably cost more.

    Homeowner’s insurance only covers owner-occupied homes. It does not cover anything that happens in a home where the owner does not personally live. It does not cover vacant homes. It does not cover rented homes. It is utterly and completely useless unless the owner lives in the home.

    If she gets the correct type of policy for a rental home, it will cover fire and some other things, but not everything that a homeowner’s policy covers for an owner-occupied structure. However, it will cover more than homeowner’s insurance covers for a rental property, because homeowner’s insurance covers nothing for a rental property.

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