Do I Need Homeowners Insurance for a Rental Property? header image

Do I Need Homeowners Insurance for a Rental Property?

You know you need insurance for your own property — but what about a property you rent out? If you’re renting out a room, your homeowners policy will probably do the job. But if you don’t live in the same home, you may need additional coverage. There are a lot of ins and outs to insurance for landlords, so let’s take a look!

Personal Versus Commercial

The right insurance for landlords is heavily influenced by the number of tenants in a property. Depending on the number of families that live in your rental property, you may not be able to write it under a typical policy. A one- or two-family dwelling may qualify for a homeowners policy, but a larger dwelling might require a commercial policy. Your local Farm Bureau agent will be able to help identify which category your policy belongs under.

Liability Insurance

What if a tenant is hurt on your rental property? Liability coverage could help you pay for resulting medical expenses or legal fees, especially if you are found to be at fault. Your own personal liability coverage probably won’t extend to your rental property, so be sure you have adequate coverage.

Personal Property Coverage

If you provide certain items for your tenants’ use, like a lawn mower or snow blower, you will want to consider personal property insurance. This coverage can help cover items that you store on site. Take note: This coverage won’t cover your tenants’ personal belongings — they’ll want to consider renters insurance for that!

Umbrella Coverage

This valuable coverage can extend the protection provided by your homeowners or commercial policy. For example, if a tenant is hurt on your property and the medical bills go beyond what your liability insurance will pay, an umbrella policy can help bridge that potential gap.

What Does an Umbrella Policy Cover?

To Insure or Not to Insure?

If that’s your question, look no further than local Farm Bureau agent! He or she can help ensure that both you and your rental property are protected from those everyday risks you face.

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