Do I need separate coverage for my rental property?

Yes, if you are planning on renting out your home you should acquire a policy geared towards your unique needs as a landlord. These policies, sometimes called Landlord policies, typically offer an increased amount of liability coverage and exclude contents coverage. This would be the best bet for a landlord who wasn’t planning on having any furnishings in the home. However, if you were planning on renting a furnished home, you should have contents insurance.

If your renter needs coverage for their belongings they should purchase a separate renter’s insurance policy. This will cover them in the event that their contents are destroyed or stolen in a covered loss. A renter’s policy is typically less expensive than a homeowners policy in the same area because a renter’s policy does not provide dwelling coverage for structural damages.  Structural damages would have to be covered by the Landlord’s policy.

For more information on renter’s insurance, visit the Insurance Information Institue.