Renting out your old house? Change the policy first

Landlord · Updated October 2026

Why your homeowners policy may not respond

A homeowners policy assumes you live in the house. Once you move out and a tenant moves in, the risk changes. Many homeowners policies limit or exclude coverage for a home you do not occupy or that is rented to others. If a fire happens after the switch, a claim could be denied or reduced.

Tell us before the tenant moves in, so the right policy is in place on day one.

Landlord (dwelling) policies

Rental homes are typically insured on a dwelling policy, often called a landlord policy:

• DP-1 covers a limited list of named perils and often pays actual cash value. It costs less and leaves more gaps.
• DP-3 covers the building on a broader basis and often pays replacement cost. It usually costs more and covers more.

What a landlord policy usually includes

• The dwelling, and often other structures like a detached garage
• Fair rental value or loss of rents, which replaces rental income while the home is being repaired after a covered loss (usually included in DP-3, often limited in DP-1)
• Landlord liability, often added, for injuries claimed by tenants or visitors due to the property's condition
• Your property at the rental, such as appliances you provide

What it does not cover

• Your tenant's belongings. Tenants need their own renters insurance.
• Your tenant's liability. Again, renters insurance.
• Short-term rentals, such as nightly vacation rentals, are often excluded or require a specific policy.

Require renters insurance

Put a renters insurance requirement in your lease, with a minimum liability limit, and ask for proof each year. It protects your tenant and reduces the chance that their accident becomes your claim.

Don't forget the umbrella

Rental property adds liability exposure. If you own one or more rentals, an umbrella policy may make sense. Ask whether your umbrella covers rental properties and what underlying limits it requires.

Vacancy between tenants

Many policies restrict coverage after a home has been vacant for a set period, such as 60 days. If a unit will sit empty, tell us.

Rental income and your other policies

Rental property adds exposure beyond the building. If a tenant's guest is hurt and sues, your landlord liability responds first, then your umbrella if you have one and it includes rentals. Make sure your umbrella insurer knows about every rental property you own.

Forming an LLC

Some landlords hold rental properties in an LLC. If the property is owned by an LLC, the policy should name the LLC. Tell us how title is held so the right party is insured.

Repairs and records

Keep records of maintenance, inspections and repairs. They support claims and help defend against allegations that the property was neglected.

Common questions

Does homeowners insurance cover a house I rent out?

Often not, or only partly. A landlord (dwelling) policy is designed for rental homes.

What is the difference between DP-1 and DP-3?

DP-1 covers a narrow list of perils, often at actual cash value. DP-3 covers more broadly, usually at replacement cost.

Does a landlord policy cover my tenant's belongings?

No. Tenants need their own renters insurance.

What is loss of rents coverage?

It replaces rental income while a home is being repaired after a covered loss.

Related

• Landlord insurance
• What homeowners insurance does not cover
• Personal umbrella insurance: what it is and who needs it
• How much renters insurance do you need?

Questions about your own situation? Call 417.206.3733 or send us your current policy. We are licensed in Missouri, Kansas and Oklahoma, and you can buy by phone without coming in.

Own a rental near the lake? See Branson-area rental and second-home insurance.