Minneapolis, MN · Member since 2014 · 14 posts · 0 votes
We're doing some financial forecasting as we get ready to purchase our first home ($120k-$150k range) and are trying to project insurances... can someone clarify for me... Do you get a Landlord Insurance Policy IN PLACE OF a Homeowner's Policy, or do you get both?
Any thoughts on what to expect for those types of policies in terms of pricing on a $120k-$150k home?
A home is a property you purchase for personal use and needs to have home owners insurance. If you rent out a portion of your home you need to inform your insurance company of that fact. A property you purchase specifically as a investment to be used exclusively and totally as a rental property is business use and must have rental property insurance coverage (landlord).
One is a Home the other is a Income Investment Property.
A home is a property you purchase for personal use and needs to have home owners insurance. If you rent out a portion of your home you need to inform your insurance company of that fact. A property you purchase specifically as a investment to be used exclusively and totally as a rental property is business use and must have rental property insurance coverage (landlord).
One is a Home the other is a Income Investment Property.
The policy will not cover household furnishings, the renter's own insurance will cover that. The property insurance should be about 80% of what the equivalent homeowners policy cost would be to give you a guideline.
Minneapolis, MN · Member since 2014 · 14 posts · 0 votes
8y
@Thomas S. Oooook so when I'm projecting our expenses, I've been doing it wrong assuming that I will need homeowners AND renter's. I will only need renters. Am I understanding that rightly? Thanks for your help!
@Thomas S. Oooook so when I'm projecting our expenses, I've been doing it wrong assuming that I will need homeowners AND renter's. I will only need renters. Am I understanding that rightly? Thanks for your help!
Yes that’s correct if you do not plan to actually live in the home.
Lender · Blaine, MN · Member since 2013 · 303 posts · 131 votes
8y
@Mitch Reaume it all depends on what you are doing with the home. You said "purchase your first home". You need to clarify on if that is going to be your personal residence, or you meant your first investment property. If an investment property, is it a turn key rental, or are you flipping it? Those will require two different types of insurance.
in that case you will only need a rental property policy (which can also be known by the following names: Investment property policy, Landlord policy, business policy) You do not need renters insurance. You're tenants can pay for that on their own if they want it, or if you require them to have it. you do not need a home owners policy.