Homeowners Ins.

[Matt Williams]

Hi BP, I have a question is about Insurance. I'm currently in the process of renting out my primary home and I'm under contract on a new OO. I don't want to spook my lender, so do I leave my current policy in place or do I get a landlord policy? If I do leave it the same in doing so will the policy even be effective being that there will be renters in the house and not the owner? And for my new OO policy should I go with the same company as the rental or not? I do plan on acquiring more property in the future but I will buy as an Investment and not an OO. ANY ADVICE HELPS THANKS!

[Thomas Weir]

Most companies would require you get a landlord policy if not OO. Your tenant can get a renters policy if they would like.

[Timothy W.]

So you want to conceal information from your insurance company about a change in the status of the risk they are insuring....and you published it online with your full name and location?  I don't mean to sound harsh but think about how that is going to sound to an adjuster when your house has a fire started by the tenants electronics equipment.  I'd send an email to my agent notifying him of the change in risk and keep that email as evidence that I notified the carrier in the event of a claim.  I don't know if insurance companies bother to talk to lenders.  I never have.  The only time I've had to communicate with them is to coname them on payment checks or if they're filing a claim on a foreclosed property.

[Matt Williams]

Hey @Tim W, thanks for your reply. I am not trying to conceal anything, simply looking for advice. I am a newbie and this will be my first rental.

[Timothy W.]

Matt,

Not a problem - just showing you how this could potentially look if you had a claim and it was investigated.  Look like Dudley Do-right to your agent.  It's your agent's responsibility to handle it going forward.

Tim