If the Owner is Not Residing in the Property, Will the Homeowner's Insurance Pay?

Before making a decision, homeowners must follow up with their insurance company. Your insurance company may reject your claim if an event occurs while you are renting the house after moving out. Your insurer can object and stop providing coverage if you keep the house unoccupied for a long time. The homeowner's policy provider will pay claims if the owner has the proper coverage and is not residing on the property.

Inform Your Insurance Company

You may have the wrong type of coverage and violate the terms of your current homeowner's policy if you fail to disclose the accurate occupancy status. You need a landlord policy if you don't live on the property and renters do. Your typical home insurance coverage might not be adequate if an accident occurs, if your home is vacantly on the market, under construction, or if you are simply away from home for longer than 30 or 60 days.

Risks of Non-Owner Occupied Homes

A landlord policy offers limited liability in the event of a lawsuit and coverage for damage to property structures, personal belongings, lost rental income, and uninhabitable home coverage. Due to the higher risk involved in renting out your property, landlord coverage costs 10% to 15% more than a typical homeowners policy. Renters typically don't maintain the rental property as well as owners, which might lead to more hazards. Vacant home insurance is more expensive due to the increased risk of accidents in vacant homes. Abandoned-home policies sometimes do not cover accidents involving these crimes because vacant homes might attract theft, vandalism, and trespassing. Instead, they cover common claims like fires and specific severe weather.

Threats You Face

If you violate any of the clear terms outlined in your insurance policy, insurers may reject your claim. If your provider discovers that your house is unoccupied or that you haven't paid the premium, they may decide to drop you. If your home burns down or someone is hurt on the property, cutting corners with the right coverage—whether a homeowners policy endorsement or an entirely new policy—could cost you more. It is not an acceptable defense to merely forget or put off telling your insurer about the change. Most plans have provisions for "neglect" or "abandonment" of the property, which can apply if you don't inform the provider of your true tenancy status.

Advantages of Providing Details

Let the insurance company know if you utilize the house as a rental, a second home or vacation property that you hardly ever use, or an empty house you're trying to sell. An otherwise legitimate claim may be refused if specifics are omitted or the policy's fine print is ignored. You might need to inform your insurer when the residents will be present, for instance, if you rent out the holiday home for a portion of the year. Additionally, if you relocate close to the house you don't live in, your insurer might give you a discount because you'll be able to check on it and visit it more frequently.