by Guest » Thu Dec 04, 2008 09:15 am
Gonna rent my home sooner or later..hope i'd qualify for a renters policy.
Is there a need for fire dwelling coverage? Purpleheaded08
Is there a need for fire dwelling coverage? Purpleheaded08
Posted: Fri Dec 05, 2008 01:28 pm Post Subject:
If the owner is living some place else (I'm hoping, not out on the street) then he/she should have a property policy (home owners, renters, etc.).
Well, this is truly interesting!
It leaves just 2 more questions for tcope over here-
i) Does it mean that the renters insurance could be covering for both the owner's property as well as the tenant's property?
ii) Is it really possible for a home owner to receive home owners coverage even when he is renting out? (It would really help people like me who're yet to learn more about home insurance).
Thanks..Roddick
Posted: Sat Dec 06, 2008 12:41 am Post Subject:
Boy, the answers in this thread have jumped all over the place, haven't they? Let me see if I can shed some light on this...
We've established that the OP owns the home and will be renting this home to others. The home will not be owner-occupied, and that alone takes care of one question. In order to carry and maintain a HOMEOWNER insurance policy on the home, it MUST be owner-occupied! Since the OP isn't going to live there anymore, no more homeowner's insurance policy. So, how does he protect the dwelling and any personal property of his that might be in the home after he rents it out?
Simple. A Dwelling Fire policy, preferrable a "DP-3 Special" form. "DP" Stands for "Dwelling Policy" most commonly referred to as a "dwelling fire" contract. A DP-3 will protect the owner from many different perils, it actually has "open perils" coverage on the dwelling with certain exclusions. It also has personal property coverage on a broad-form (named-perils) basis which will cover the owner's personal property on the rental premises, such as a washer/dryer, curtains, etc. The personal property coverage in this policy will NOT cover property of renters.
This policy also has coverage for what's known as "fair rental value" which will cover the loss of rent the owner would run into if the home suffers a covered loss and the tenants have to move out until the damage is repaired. This is normally subject, as previously mentioned, to a 1-year time limit. Other structures located at the residence premises would also be covered under this form, like a detached garage, etc.
Liability coverage for the owner would have to be endorsed onto the contract at extra premium. The base DP-3 does NOT have liability coverage included. This is a HUGE consideration, and must be included as an endorsement. :!: :!:
The renters will have NO protection under this form of coverage. In order for the renters to have any protection, they need to purchase an HO-4, commonly called a "tenant-homeowner" or "renters" policy. This will cover their unscheduled personal property on a named-perils basis, and also provide personal liablility coverage at the coverage amount selected. There is no coverage for the dwelling or other structures in this policy.
Does that answer anything?
InsTeacher 8)
Posted: Sat Dec 06, 2008 01:49 am Post Subject:
Does that answer anything?
yes, it does almost, what's for supper?Posted: Wed Dec 17, 2008 12:11 pm Post Subject:
Hi Insteacher,
Would you mind explaining a bit more about the benefits of this open perils coverage that you're talking about. See, if you can also add a couple of exclusions for my knowledge.
anonymous00 :)
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