Rented Dwellings are properties that are occupied by an individual or group of people (called the tenant(s)) other than the owner (called the landlord), and the owner is receiving payment in exchange for the occupancy.
The landlord can purchase a Rented Dwelling insurance policy to provide coverage for the building as well as any landlord contents, including the appliances (washer, dryer, fridge, stove) and in some cases furniture if they are renting the home furnished. The landlord can also purchase coverage for their rental income in the event the landlord is not able to collect rent due to an insured peril (risk). Most Rented Dwelling insurance policies exclude damage caused by the tenants, so it is highly recommended that landlords screen their tenants carefully.
The tenant’s personal property is not covered under a Rented Dwelling insurance policy, and therefore it is recommended that all tenants carry their own Tenant’s insurance policy for whatever limit of contents coverage they require.
The landlord and tenants are not mutually exclusive when it comes to liability. Liability depends on who, if anyone, is found negligent in the event of a loss. The rental agreement may define who is liable in the event of certain situations.
The information required to obtain a Rented Dwelling insurance quote for a landlord is not much different than that for a Homeowner’s policy. The information collected from the landlord and about the property depends on what type of dwelling is being insured (ie. condominium, single family dwelling, etc) and how it will be rented out (ie. to a single family, roomer and boarders, etc.).
If you have a rental property that you would like us to provide a quote on, or if you are considering renting out your home and would like to discuss your insurance options, please do not hesitate to contact our Office and one of our knowledgeable Brokers would be happy to assist you.
The Costen & Associates Team