I own my home and live with renters. What insurance do I need?

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When I bought my home initially it needed work, so I bought homeowners insurance for myself since I was the only one living there. Since then I have rented three of my rooms out (I still live in the master bedroom) but have yet to tell my insurance agency. I know I need to, I want to be able to collect on policy but now that I have renters does that mean I can only get renters insurance?

  1. Reply
    Mark S
    June 26, 2011 at 8:01 am

    The short but honest answer is that it depends on the details of your situation. You need to speak with your agent as soon as possible.

    Most likely you will be able to keep all of the coverage you currently have, and there will be an additional cost to add on the additional coverages you need as a landlord. And you absolutely need to get that taken care of ASAP. For example, if one of your tenants slips and falls down your stairs, and they decide to sue you – your current policy probably won’t cover it.

  2. Reply
    June 26, 2011 at 8:52 am

    Having tenants changes your risk with your homeowner carrier. Call your agent immediately and inform them or they could deny any claim you submit in the future.

    Your tenants need renters insurance, not you. You keep homeowners insurance and add a couple of endorsements. Renters insurance is for those who rent from someone else. Your tenants having renters insurance protects their personal property and any liability they may possibly have. If one of your tenants cause a fire or have an animal that bites someone, renters insurance will protect them and it’s likely you won’t even have to make a claim, only them.

    Seriously, call your agent. There’s a lot you need to discuss.

  3. Reply
    June 26, 2011 at 9:31 am

    Yeah, you’ve got a problem, if there’s a claim.

    No standard homeowners insurance company is going to cover your BUSINESS, which is a rooming house. You need a completely different policy – a commercial property and liability policy, which will, of course, cost considerabliy more.

    Renters insurance, is what your TENANTS should buy – each of them should buy a different policy.

    Go talk to your agent. He’ll roll his eyes, but get this straightened out.

  4. Reply
    June 26, 2011 at 9:48 am

    homeinsurance.awardspace.us – try this one. Got my home insurance from them. As I know they provide such a service.

  5. Reply
    June 26, 2011 at 10:33 am

    Normally if a client were to have a tenant living in a self contained unit in their home then all they would need is a Homeowner’s policy that’s been endorsed to make it a two family dwelling. However in your case you’re using your home as a rooming house. No Homeowner’s insurer is going to insure a house that, while owner occupied, is also being used as a rooming house. Your better speak with your broker/agent ASAP as they are probably going to have to search in the high risk homeowner’s market. If you do not do this then your policy will not be worth the paper it’s written on if a claim should occur.

  6. Reply
    June 26, 2011 at 11:13 am

    You are fine I would not panic.

    The only problem in your case is that any contents which are in the rooms that are rented are not covered under your policy. any of the tenants items are not covered under the policy.

    all the building and attached fixtures are covered on the policy.

    If any of the tenants steal or damages the house the loss is not covered in this case.

    look under the exlcusion of your policy. or the paragraph stating
    Property Not covered.

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