Home Owner's Insurance and Renter's insuranc

[Chioma Wagbaranta]

Hello Everyone,

I am just starting out in property investment and I found this website just in time as I am about to close on my first rental property. I'm so glad for the wealth of information here because I have no idea what I'm doing except that I know I want to own rental properties for cash flow. 

I'm buying a newly built town house and I will get a home owner's insurance for my property. I am getting a property manager to manage it for me. My questions is, how does my home owner's insurance work in relation to renters insurance for tenants. Do I need to require tenants to get renters insurance. 

[Bill B.]

If the newly built townhome is going to be the rental, you DO NOT want homeowners insurance. You want landlord insurance. Landlord insurance protects the building and it’s stuff (appliances, flooring, walls, etc.) and provides some insurance for personal injury.  it does not protect any personal items inside. This is why renters should get renters insurance, it’s very cheap and replaces their stuff in case of a fire/flood/theft.