Erin B asked in Business & FinanceInsurance · 1 decade ago

Can damage from renters be claimed under homeowners' insurance?

We are considering renting out our home. If damages to the property greatly exceed the renter's deposit, can it be claimed under the owner's homeowners' insurance?

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  • 1 decade ago
    Best Answer

    Well, first of all, the HOMEOWNERS policy is conditional on the house being occupied by the owner. So if you rent it out, you need a dwelling fire policy - a whole different kind of policy.

    Yes, I HAVE seen tenant damage covered under a dwelling fire policy. There's normal wear and tear, and then there's, well, I've seen some pretty bad ones. One thing to keep in mind, if you have more than two claims in three years - for the house you live in, or for any rental properties - it's going to make you effectively uninsurable. The policy with the claims will get cancelled, and you will have a VERY hard time finding replacement coverage at three times the rate. It comes back to bite you, if you're buying a new house for YOU to live in - then YOUR prior claims, for other residences, will keep you from being able to get homeowners insurance.

    So you have to factor that in, as well.

    **Contrary to what the other person said, their renters insurance does NOT cover the damage to the residence they live in. So you won't be able to collect under their renters insurance.**

  • Flora
    Lv 4
    4 years ago

    A couple of points, if I may: (1) Replacement cost endorsement. A worthwhile addition. Typically renters policies cover on an ACV (depreciated value) basis. The RPL endorsement will provide for payment of full replacement cost if the item is actually replaced. Usually about 5% of the total premium. (2) Your friend may not have lied. If there was personal property inside of the auto it likely would be excluded (or severely limited) under the auto policy. HO or renters would likely pick it up. (3) Broker vs. Agent. Interesting use of terminology by that answerer. An independent agent works for a lot of companies (Safeco, Allied, Hartford, etc.) whereas some companies have dedicated agents (State Farm, Nationwide, etc.) There are very good agents of all forms. Direct is also an option these days, but personally I prefer a good local agent that can assist you more directly.

  • 1 decade ago

    Arggg....Here's an answer from an insurance adjuster:

    First - there are two types of damage -

    A) Normal wear and tear due to renting

    B) Intentional damage from a renter

    Normal wear and tear from renting will be considered your "business". You are in the "business" of renting property, and this type of loss comes with the "business" or being in the rental business.

    B) Intentional damage will normally be considered a vandalism or malicious mischief cause of loss. This would most likely be covered under a homeowners policy; HOWEVER, it would be more correct to change your policy to a dwelling policy as opposed to a homeowners policy declaring it is used as a rental.

    If you have a "better" insurance company, they would most likely may for item "B" damage from above under a homeowners policy; if you have a "more poor" insurance company, they would most likely try to deny the coverage as the property is used as a rental.

    Again, the best thing to do is declare it's a rental, and have the policy changed.

    Regardless of what you do, you will still be responsible for type "A" damages.

    Source(s): Insurance Adjuster
  • Anonymous
    4 years ago

    Yes, depending on the policy you have it should cover it.

    good luck

    RE:

    Can damage from renters be claimed under homeowners' insurance?

    We are considering renting out our home. If damages to the property greatly exceed the renter's deposit, can it be claimed under the owner's homeowners' insurance?

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  • 1 decade ago

    thats why you need to get them to sign a lease and that way they will be held responsible for damages...renters insurance is offered to them that way and its less than $10 a month through alfa

  • John M
    Lv 7
    1 decade ago

    no, the act of renting out your house will limit the coverage you have. in fact, you should let your insurance agent know you will be renting the house out, because you will need additional liability coverage so if the tenants are harmed in the house you will be covered sufficiently. Be sure to do this, or you can really get burned.

  • Anonymous
    1 decade ago

    You will need to MODIFY your insurance coverage if you convert an owner-occupied house to a rental.

  • 1 decade ago

    Probably if under vandalism. I don't think you can claim it under regular insurance.

    Call your insurance company and ask for the price of a policy. Make sure you tell them what you want. It will probably be high.

  • 1 decade ago

    I doubt it, but you can pursue the tenant through the court system to collect the amount if it is greater than the deposit. You should contact your insurance provider to be sure.

  • Anonymous
    1 decade ago

    don't think so

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