Home Owners Insurance Coverage
for Those with a Rental Unit

However, even if you don’t have a mortgage on your property, you still need homeowner's insurance to protect yourself in case of loss.

The biggest mistake you can make when getting homeowner's insurance is buying coverage you don't need. For example, if you live in an elevated area, you should not need to carry flood insurance. Many homeowners are paying for flood insurance when there is no possibility of flood damage. Of course, if you live in an area that could be flooded, you want to make sure that your policy does carry flood insurance on your property.

Every standard policy should include fire coverage. However, you should check on how far away you live from the fire department and the location of the nearest fire hydrant. The closer your property to either one of these could reduce your insurance rate significantly. Your insurance agent will probably ask you for this information, but if he or she doesn’t, be sure to provide the information and ask whether it will lower your rate.

Many homeowners have property insurance with one company, life insurance with another, and car insurance with yet another. You can save as much as 20 percent if you have all of your insurance policies with the same company. You can also save on your homeowners insurance rate in two more ways: by raising your deductible and by asking your agent about any discounts you would be entitled to if you made specific changes to your property. For example, if you took additional security measures, such as installing an alarm system or double locks on all your doors and windows, you might qualify for a reduced rate or discount.

If you own a dog, you'll want to make sure that your insurance agent knows about it and that your policy includes liability coverage. If your dog is on the list of dangerous dogs to have, your rate may be increased or the company may not insure you at all. To protect yourself, you'll want to ask them about how your dog fits in the picture and whether taking extra safety measures will prevent a higher rate. For example, having a large, secure, fenced-in area for your dog may help reduce your rate.

If you have a rental unit in your home, you may want to require your renters to have renters insurance. This will protect your renters in the event of any loss of personal items due to an unforeseen incident in your home, such as theft, fire, or damage from plumbing leaks. Many landlords require renters to provide proof of renters insurance before moving in. If renters do not have renters insurance, and they suffer the loss of personal items, the costs may fall back on the landlord.

To save money on your homeowners insurance and yet have all the coverage you need, you should assess your policy and needs every year and compare your rate with the rates of several companies. Insurance companies and rates are changing quickly these days, and you might be surprised at all the options available to you.

When you make any updates or additions to your property, be sure to let your insurance company know. You want to make sure all your investments in your property are protected in your policy.