Being Phoenix property managers, we always have Phoenix property owners asking us about the best option for property insurance for a rental property.  Of course when you live in the home, you have owner occupied insurance which often times gets paid by your mortgage company as part of your escrow fees.  But once you decide to rent the property out what insurance changes do you need to make?  Here are the top 3 things to consider:

1. Contact your insurance company to confirm they offer non-owner occupied policies because some of the very large discount carriers such as Geiko and Travelers may not offer the coverage in your area.

2. Ask your agent how long you have with your owner occupied policy to place a tenant – most companies only give you thirty days.  This means that if you vacate the home and in thirty days you haven’t placed a tenant and your AC gets stolen your insurance company won’t cover the claim.  Although vacant insurance coverage is pricier than owner or non-owner occupied it may be a good short term option to insure that your property is properly covered when vacant.  Then, when you find a tenant you can change the coverage to non-owner occupied (keep this in mind in between tenants as well).

3. Consider adding an umbrella policy to your other insurance plans.  Carefully review the total value of all of your assets and keep in mind that if you face a lawsuit with your rental, you can be sued on a personal level meaning that all of your assets may be compromised. However, an umbrella policy can offer you coverage beyong what your homeowner’s offers. For example, if you have a $500K limit on your homeowner’s and someone sues you for $1M, the difference of $500K can be levied against you personally whereas if you have a $1M umbrella policy your total possible insurance coverage is $1.5M.  Depending on your total net worth an umbrella policy might be a must have.

In conclusion, be sure that you have a good insurance agent who can provide you estimates for all options and discuss what plan is bet for your financial situation.


RPMWV Phx offer full service property management to property owners within the Phoenix Metro area.  Preparation for rental such as proper insurance coverage is all part of our full services.  Contact us today for your first 3 months for  FREE!!! 602-281-2884