If you are renting a house from someone or renting out a house you own, you will need insurance, and the policies needed for these two events are similar yet very different. One policy is called renter's insurance, and the other policy is called rental house insurance. Here is an explanation of the differences between renter's insurance and rental house insurance and understanding these differences will help you choose the right policy for your needs.
Renter's insurance is the type of insurance policy you would buy if you are renting a house from someone. Renter's insurance provides a way for you to protect the things you own even though you do not own the house or apartment you live in. If you owned the house you live in, you would have protection of your things through homeowner's insurance, but you cannot purchase homeowner's insurance if you do not own a house.
Through renter's insurance, you also have liability coverage, which means that you have protection if a guest gets injured while visiting you. Without renter's insurance, you would lose everything you owned if a fire destroyed your apartment. If you like protecting yourself, you will need to purchase renter's insurance when renting the place you live in.
Rental house insurance
The second type of insurance is called rental house insurance, and this is the type of policy you would need to purchase if you owned a house and decided to rent it out to a tenant. If, for example, you built a house and did not sell your existing house, you could move to the new house and rent the old one out. When you do this, you instantly become a landlord, and your house becomes a rental property.
You cannot keep a regular homeowner's insurance policy on the house you are now renting to someone else. Instead, your insurance company would offer you a rental house insurance policy. When you rent out your house to someone, the risks change from when you lived there. Because of this, a rental house insurance policy might cost a little more than the homeowner's policy cost when you lived in this house.
If you need renter's insurance or rental house insurance, you can purchase a policy by contacting a homeowner's insurance company today. If you want to save money on a policy, call around for several quotes from different insurance companies. For more information on real estate property rentals in your area, contact your local real estate group today.