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SAN FRANCISCO — An important aspect of owning a rental property is having the right insurance policy in place. After initially owning a primary residence, many property owners move on to a second home and keep the first as a rental or investment property. A common mistake in this instance is neglecting to update the first home’s insurance policy in conjunction with the change.
When you own a home that’s your primary residence, your insurance policy is called a homeowners insurance policy. However, when you rent out a property where you’re no longer living, you need to update that property’s insurance policy to a rental insurance policy. Having the correct insurance policy in place is crucial to avoid unnecessary costs in the event of an issue with a tenant or the property itself.