Renting out the home you lived in: what to do about your insurance
Tell your insurance company before the tenant moves in. A homeowners policy is written for a house you live in, and many companies limit or deny claims when a tenant lives there and the insurer was not told. The usual fix is to switch to a landlord policy, often called a dwelling fire or rental dwelling policy, and to check the occupancy terms in your mortgage.
Why a homeowners policy often stops fitting
A homeowners policy bundles building cover, your belongings, liability and living expenses on the assumption that you live there. When the house is rented, the risk changes: you are no longer on site, a tenant's habits matter, and your exposure to tenant injury claims is different. Insurers often respond by requiring a landlord form, or by limiting what a homeowners policy pays when the home is rented.
| What changes when the home is rented | Why it matters for insurance |
|---|---|
| You no longer live there | Occupancy terms in a homeowners policy may no longer be met |
| The tenant owns the belongings | Your contents cover shrinks to what you leave, such as appliances. The tenant needs a renters policy |
| You become a landlord | Liability needs to be written for rental use |
| Rent is your income | Loss of rent cover protects it; homeowners policies offer fair rental value only in limited cases |
Policies differ by company and state. Ask your agent how yours treats a rented home.
The order to do things in
- Call your agent when you decide to rent, ideally 30 days before move-in, and say whether the home will sit empty first.
- Ask for a quote on a landlord policy for the same property, with the limits you need for building, liability and loss of rent.
- Start the new policy on or before the day your homeowners policy would stop fitting. Do not cancel the old one until the new one is bound.
- Tell your mortgage lender. Many mortgages for a primary residence include an occupancy clause, so read yours and ask the lender what it requires if you rent the home.
- Update the named insured if you are moving the property into an LLC, and ask your lender and title company about the effects before you transfer.
- Ask the tenant to buy a renters policy and send you the proof.
Between the day you move out and the day the tenant moves in, the home may be vacant. A vacancy clause can reduce or remove some cover after a set number of days, so ask about that gap too.
What a landlord policy usually costs you
Rental policies often cost more than homeowners policies because they cover a property you do not live in, and some cover fewer perils. This guide does not give prices, since they depend on state, company, age and condition. The comparison that matters is not the premium alone. Compare what happens in a fire, a burst pipe and an injury claim under each form.
Example a made-up owner sees a homeowners premium of $1,400 a year and a landlord quote of $1,900. The landlord policy costs $500 more, but under the homeowners policy a $60,000 fire claim on a rented house could be reduced or denied because the insurer was never told of the tenant. The $500 buys cover that fits the use. Premiums on a rental are also generally a deductible expense.
Records to start on day one
Once the house is rented, income and expenses go on Schedule E, and the tax basis and depreciation start when the home is placed in service as a rental. IRS Publication 527 explains how a former home becomes a rental. Keep the date you converted it, the value at that time and the cost of improvements. Your tax preparer can advise on the numbers.
How DoorKeeping handles it
Add the property, upload the new policy and your agent's emails as documents, and keep the lease, move-in photos and work orders together. From the first rent, the books track income and expenses by property and map them to Schedule E lines. DoorKeeping does not sell insurance or decide coverage.
Sources
- NAIC, National Association of Insurance Commissioners, consumer information, read Oct 31, 2026
- Insurance Information Institute, consumer guides on insurance, read Oct 31, 2026
- IRS Publication 527, Residential Rental Property, read Oct 31, 2026
Questions
- Do I have to tell my insurer I am renting my house?
- Yes, you should. Many policies are written for owner occupancy and may limit claims when a tenant lives there and the insurer was not told.
- Will my mortgage lender care if I rent the home?
- It may. Many primary residence mortgages have occupancy terms. Read your loan documents and ask your lender before the tenant moves in.
- Does my tenant need their own insurance?
- Your policy does not cover their belongings. A renters policy covers them and often their liability, and a lease can require it.