Does Homeowners Insurance Cover a Rental Property?

Dwelling insurance – not homeowners insurance – will help protect your rental property and cover physical damage to it.

What is the best policy for my rental property?

Dwelling insurance is the best policy for your rental since it addresses the coverage needs of landlords who don't live on the insured property. It covers the building itself and anything attached to it (such as a garage or deck), along with building features such as walls, floors, windows, and doors. Dwelling insurance also provides coverages for other structures, personal property, and fair rental value.

What doesn't dwelling insurance cover?

Dwelling insurance does not cover theft of personal property. Liability and theft coverages are available by customizing a dwelling policy with an endorsement. Like homeowners insurance, flood and wear and tear are not covered, along with additional excluded perils.

How does homeowners insurance differ from dwelling insurance?

A homeowners insurance policy addresses the coverage needs of homeowners who live in the insured property. It covers your structure and external structures on your property (such as a detached garage or shed). Unlike a dwelling policy, a homeowners policy also provides coverage for your private property (such as items in your home) and your personal liability (such as a lawsuit alleging bodily injury or property damage).

What doesn't homeowners insurance cover?

Most standard homeowners insurance policies do not cover damage caused by a flood or wear and tear, along with additional excluded perils.

A homeowners insurance policy may cover a loss on a "perils" basis. "Named" perils cover those specifically named in the policy, while "open" perils cover damages unless specifically excluded in the policy.