Hello Rental Property Owners,
It’s important that both you and your property are well protected. While the majority of our owners never have to make a claim due to tenant-caused damage, that doesn’t mean you shouldn’t prepare for the unexpected.
Below is a short guide from Next Brick to help you understand rental dwelling insurance and make informed decisions.
1️⃣ What is Rental Dwelling Insurance?
Rental dwelling insurance (sometimes called a landlord policy) is specifically designed for properties that are rented out to tenants.
It covers the structure, certain owner-owned contents (like appliances), liability protection, and sometimes loss of rental income if the home becomes uninhabitable due to a covered loss.
🧠 Regular homeowners insurance usually does not cover rental activity — and insurers can deny claims if the property is rented but insured as owner-occupied.
2️⃣ Why Do I Need It?
If your property is rented and you still have a homeowner’s policy, you may not be covered for:
Liability claims from tenant or guest injuries
Loss of rent after fire, storm, or other covered damage
Damage caused by tenants
Claims while the property is unoccupied or vacant
Switching to a rental dwelling (landlord) policy ensures your investment remains protected.
3️⃣ What Does It Typically Cover?
A rental dwelling policy often includes:
Dwelling coverage – protects the structure itself from covered perils (fire, wind, etc.)
Other structures – garages, fences, sheds
Owner’s personal property – items you own and provide for tenants (appliances, maintenance equipment)
Loss of rents – reimbursement for lost income if your property becomes uninhabitable
Liability coverage – protection if someone is injured on the property or you’re held responsible for damage
Coverage can vary, so always review details with your insurance broker.
4️⃣ When Should the Policy Start?
Ask your broker when the new policy should take effect — typically:
The day you move out, or
The day tenants move in
If you forget to switch from homeowner’s to rental dwelling coverage at that time, your property might not be properly insured.
5️⃣ How Do I Choose the Right Broker or Insurance Partner?
We recommend that you:
Partner with a like-minded broker who understands investment properties and can assist you with claims if needed.
Educate yourself on available add-on coverages (loss of rent, flood, earthquake, etc.). A small increase in premium can protect you from thousands in potential losses.
Shop around – compare brokers and companies to find the right policy that fits your needs.
Confirm licensing and reputation of any broker before purchasing a policy.
One broker we’ve worked with is Charles Lindberg with Goosehead Insurance (Bellevue, WA).
🔗 https://www.goosehead.com/agents/wa/bellevue/charles-lindberg/
Please do your own due diligence before purchasing any policy. Next Brick is not an insurance company or licensed advisor.
6️⃣ What Else Can I Do to Protect My Property?
Along with proper insurance, consider these best practices:
Screen tenants carefully
Require tenant renter’s insurance
Conduct move-in/move-out inspections and document property condition
Maintain the property regularly (roof, plumbing, HVAC, safety equipment)
Install smoke alarms, fire extinguishers, and security lighting
Keep detailed records of leases, maintenance, and inspections
These simple steps help prevent claims and preserve the long-term value of your investment.
Final Reminder
Rental dwelling insurance is the official coverage you need once your property becomes a rental.
Please review your current insurance and contact your broker to ensure your policy is correctly classified and active before tenants move in.
If you’d like recommendations or guidance, our team at Next Brick can point you in the right direction — but please note, we are not an insurance provider or advisor.