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Does home insurance cover renting out the property?

Does home insurance cover renting out the property?
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Does home insurance cover renting out the property?

Many new owners are wondering whether the current homeowners' insurance policy is sufficient to cover their rental properties. Whether you have just purchased an investment property or are juggling with the idea of renting out your own home for a short period of time, you may be wondering what to do about covering the property.

Unfortunately, there is no single answer to this question that works for everyone. However, the type of coverage you will need will depend on how you intend to rent the property.

We explain some additional details below. To find out if you need to take out supplemental insurance for your rental. Read on

Will homeowners insurance cover rental properties?

If you only plan to rent out your primary residence infrequently and for short periods of time, there is a chance that your guests will be able to cover with your existing homeowner insurance policy.

While some providers will only extend coverage, others will offer you coverage through an additional contestant that you can add to your policy. However, in order to obtain coverage in either scenario, you will likely have to inform your insurance provider of the tenants ahead of time.

On the other hand, if you intend to engage in short-term rentals on a regular basis, such as renting out your property through Airbnb, you likely will not be covered under the current homeowner's insurance policy. In this case, there is a good chance that your property will be considered a business and you should consider getting commercial property insurance instead.

If you're trying to insure a full-time rental property, homeowner insurance isn't for you, either. In this case, you should consider obtaining a landlord policy, also known as a property rental policy.

Does home insurance cover renting out the property?1
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Protect your rental property

While there are several different types of owner insurance, it is best to get a policy that includes the following types of coverage:

Home insurance: This type of coverage covers damage to the property itself. However, it usually only covers damage in case of danger, so it is important that you understand what type of risk your own policy covers.

Personal property insurance: Here, personal property coverage covers only those who are in the ownership of the owner. It is worth noting that your tenant's property will not be covered. If you want this type of coverage, the tenant must be required to obtain tenant insurance as part of your rental agreement.

Liability insurance: Liability coverage will protect you from having to pay legal or medical costs in the event someone is injured during your stay in a rental property.

Loss of rental coverage: Finally, losing rental coverage protects you from losing rental payments in the event that your investment property becomes habitable due to risk. However, again, you'll want to check to see what specific types of risks your policy covers.

In addition to your homeowner's insurance policy, you may also want to consider the following types of supplemental insurance for your investment property:

Vandalism insurance: Vandalism coverage protects you from intentional damage to your property.

The decree or statutory coverage: This type of coverage protects against any losses incurred from having to enforce local laws while repairing the property.


If you are considering a short-term or long-term rental, you will need an insurance policy that adequately protects your property. When you are in the market for an insurance policy, the best thing to do is shop. Be sure to compare rates, lenders, and coverage options until you find a policy that works for you.