Many people consider renting out their home after purchasing a new one. People buy and sell homes at the same time. In this market, many times people will choose to just rent it out.
When one rents out a home, usually it isn't voluntary, it's because they usually have to. This effects your home insurance because you are no longer a owner occupied resident, you are now officially a landlord. When you have a tenant move in, it will change the whole risk profile of that home. You are no longer in the home, therefore it will of course cause more risk for the insurance company. Most tenants will not keep a property up the same way a homeowner would. Historically this leads to more claims.
Around $1,200 a year gives one a Landlords Policy.
In this situation I always tell my clients that they need to let us know because they need a special policy called a Landlord Policy. One would have to cancel their current home insurance policy that they are renting and get a brand new Landlords Policy. The premiums are a bit difference because there is more risk invloved.
Around $1,200 a year gives one a Landlords Policy. Here in Michigan we see a typical Homeowners Policy go for around $895 a year so its not a huge price change. The most important part to remember is if there is a claim, you will not be covered. I have seen it after 17 years where people try and fool the insurance company...it always bites them in the ass! Don't do that, get the proper coverage on your home.