Homeowner vs Landlord Insurance Requirements in San Ramon

Today, I want to tell you a little bit about insurance policies and what is needed for a rental property. Most of us who own homes have a home owner’s insurance policy, which includes fire and dwelling coverage. However, when you become a landlord and you have a rental property, you will need to switch your policy to a landlord policy. We are not insurance agents at Windsor Pacific, but we do have some knowledge of the insurance requirements when it comes to rental properties, and we help our property owners work through the changes they need to make with their own insurance companies.

You will need to contact your insurance agent and discuss what you need to do to change your insurance policy from a fire and dwelling policy to a landlord policy. Typically, your landlord policy will reduce the amount of your personal liability insurance and increase the amount of your general liability limits. This is because you as the property owner are not living at the house, and instead there is a third party living there at your property.

Another form of insurance many property owners are using is renters insurance. As a landlord, you might want to consider requiring your tenants to get renters insurance. This is mostly for the tenants’ protection while they are living in your property. If they do something to damage the property, their insurance policy can help provide some coverage. The company providing the renters insurance will often work with your own insurance company to help recover the loss or damage that results from any catastrophe or problem.

Finally, some property owners consider getting a home warranty policy for their rental homes. We do not typically recommend that you spend money on a home warranty. In a previous blog, we talked about why it is often not the best way to protect your home or your tenants. Please check out that blog for more information on why we don’t recommend home warranties to our property owners and landlords.

If you have any questions about insurance, or you’re not sure how to get started on changing your own home owner’s insurance policy to a landlord insurance policy, please contact us at Windsor Pacific Property Management. We look forward to talking to you.