Homeowners Who Rent

by Tom Simplot

Mar 13, 2016

Since the Great Recession, there are hundreds of thousands of rental homes across the state. Homeowners who rent out their houses need to be sure their properties carry enough insurance coverage to protect themselves and the people living in their homes.

 Long-term rentals that are leased to someone for longer than six months should carry a landlord or rental dwelling policy. These policies typically cost more than normal homeowners insurance, but there can be a variety of possible losses and damages to this home. Rental dwelling policies will normally cover property insurance for the physical structure and also the property that the owner leaves on site for regular maintenance.

 If your rental home is aging, it’s smart to also include landlord protective policies that cover equipment breakdowns such as water heaters and air-conditioning units. Many rental owners have home warranties so that major appliances are covered for repairs or replacement. However, this coverage wouldn’t cover the wall and flooring damage done by a leaking water heater, for example. Depending on the price and your tolerance for risk, you can have a plan that covers the actual cash value or the replacement value, and you can choose your deductible.