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A homeowners policy assumes you live in the home. Once you rent it out, you generally need a landlord (dwelling fire) policy, which covers the structure, your liability as an owner, and lost rental income — but not your tenant's belongings.
What you need to know
Why the switch matters
Renting out a home insured as owner-occupied can create a coverage dispute at claim time, including for a large fire loss.
Loss of rents
Landlord policies can replace rental income while the unit is unrentable after a covered loss.
Require tenant insurance
Ask tenants to carry renters coverage and name you as an interested party. It protects both sides.
Common mistakes
- Insuring the home to market value or loan balance instead of today's rebuild cost.
- Leaving liability at the lowest available limit with no umbrella above it.
- Assuming flood and earthquake are included — both are separate in California.
- Never scheduling jewelry, art or other items that carry low special limits.
- Filing small claims that cost more in renewal pricing than they paid out.
When to talk to an agent
Talk to an agent when your premium jumps, when you renovate or rent out the home, when you are told you are being non-renewed, or any time you cannot tell from the declarations page what your policy would actually pay.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.