Home Rental Insurance

Home rental insurance is a form of financial protection that a homeowner purchases from a company. After the homeowner purchases the insurance, an agreement is made between the two parties. This agreement, called the insurance policy, specifies that the insurance company will protect the homeowner financially in exchange for the payment of premiums. On a monthly or other regularly determined basis, the homeowner pays the given premium to the insurance company. The amount of money agreed as the premium is based on a range of factors, but the most influential factor is the coverage being offered. Terms of the coverage state under what circumstances protection is provided, at at one level the protection will be delivered. Depending on the insurance company, a number of coverage types may be offered in a home rental insurance. Companies generally provide choices of personal property coverage, liability coverage, and relocation expenses in deciding a policy's coverage.

Fast Facts

  • Insured tenants will have to pay a deductible in the event of an incident
  • Most policies do not cover flood damage or earthquake damage

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