Insurance agent Laizer Schonbrun relates the following about a tenant occupied home client.
“Someone reached out to us here at Prime Insurance complaining about how the bank placed forced coverage on his tenant occupied home. He lamented about the high premium he had to pay for a policy that just didn’t seem to be right.
“Within less than 24-hours we bound a very competitive-priced policy that saved our new customer a great deal of money. Of course, we then provided the bank with his updated insurance info.”
Whether it’s a vacation house or an investment property in terms of tenant occupancy, you definitely want to go with an experienced agency that can help you find precise coverage at the most competitive rate.
Two Types of Tenant-Occupied: Required Insurance Coverage
1. Insurance for a Primary Residence Short Term Rental:
For the home owner that wants to rent out his or her primary residence temporarily for a short amount of time, the right agent may be able to locate a company that will allow a transitory rental-related policy. If this is not possible, an associated rider to the existing homeowner’s policy may be necessary.
For the home owner that decides to rent out his or her home for short periods on a continuous basis, specific business insurance similar to hotel/motel coverage may be necessary.
2. Insurance for a Non-Primary Residence Long Term Rental:
Generally, the home owner that owns a non-primary residence that is used as a rental for continuous extended periods is required to purchase Landlord Insurance. This type of insurance includes
- physical damage
- personal property coverage for appliances provided to the renter
- liability coverage
- optional loss of rental income in case, the renter leaves and no one else rents the property or the property cannot be rented because it is under repair or construction as a result of a covered loss.
Laizer can be reached at Prime Insurance, 732-886-5751, extension 205 or at Laizer [at] primeins [dot] com.
PRIME Insurance is a three-generation family-run independent agency. We’re proud partners with many of the leading companies in the industry – big names such as ACE, AmTRUST, ASI, ASSURANT, CHUBB, CNA, Employers, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more. This gives us the ability to provide all forms of nationwide coverage and bonds at competitively lowest quotes. Visit us on our online insurance website or email us at PRIME [at] primeins [dot] com or call us at 732-886-5751 and HAVE A PRIME DAY™!
Summary: A synopsis on tenant-occupied property insurance coverage by the insurance experts!