Cowart Insurance Agency Blog

All You Ever Wanted to Know About Insurance

Renting out your home?

Have you tried to sell your Georgia home, but decided to rent it out instead? Or did you recently inherit your parents’ house and now your sibling or child are temporarily living in it?

Whatever your situation may be, if you own a home and do not live in it, your homeowners policy may not cover damage from a claim.

Homeowners insurance policies are intended to cover residential homes that are occupied by the owner. If you own a home and you do not live in that home, the house, personal belongings and your personal liability arising from that location will not be protected under a homeowners policy. However, you can purchase coverage for these types of situations with a dwelling fire policy.

Each type of insurance policy is designed to cover a specific kind of exposure. If a claim occurs at a location with the wrong type of policy in force, you may not have the coverage you need. A person wouldn’t expect an automobile policy to contain the proper coverage for a house. Similarly, a homeowners policy does not contain the proper coverage for a rental house solely occupied by someone other than the owner.

A dwelling fire policy is similar to a homeowners policy in that it will cover damage to the house, other structures like a pole barn, and your liability if somebody is injured on your property. However, a dwelling fire policy also covers your liability as a landlord, as well as reimbursement for lost rental income in the event a claim occurs where the home cannot be occupied for a period of time.

If you decide to rent out a home and become a landlord, or if you have experienced other life circumstances where a Georgia house you own is now occupied by someone other than yourself, ask about a dwelling fire policy to ensure you have the coverage needed when a claim occurs. Contact us today to get started!