1. 1909 POINTS
    HDA Insurance Brokerage
    Director, HDA Insurance Brokerage, California
    Homeowners Insurance is not available for a Rental Property.  Homeowners Insurance is defined as the policy to protect the primary residence of the titled owner of the subject property.

    Rental Property should be covered by a Landlords - Dwelling Fire Policy which is designed to provide coverage for tenant occupied 1 - 4 unit residences.   

    Although mortgage companies use the term 'hazard insurance' as a requirement to provide fire insurance on the collateral upon which a loan is extended,  it is important for a home owner to purchase the correct form of insurance.    For example, during the real estate boom,  many investors purchased homes as primary home for the purpose of obtaining an owner-occupied mortgage loan thereby obtaining a lower interest rate although they clearly intended to maintain the home as a rental property,  in an effort to keep the matching story, they purchased homeowners insurance simply stating that the home was the primary residence .  Following an unfortunate occurrence and the filing of an insurance claim,  it was found that the risk had been misrepresented and the claim was denied followed by the cancellation of the policy and the return of premium. 

    It is essential that the correct form of insurance is purchased if there is an interest in obtaining protection for the home. 

    Homeowners Insurance is a lower risk than Landlords - Dwelling Fire Insurance simply due to the fact that an owner occupied property proves to create less insurance claims than a tenant occupied property.   However, homeowners insurance has more elements of coverage that are not included in a Landlords - Dwelling Fire Insurance policy. 

    Depending on claims statistics in different regions of the nation,  all carriers will have different rates for both Homeowners Insurance and Landlords Insurance.   In some areas, one may find lower rates for one type of coverage where in another area, one may find the reverse.  

    When asked if home insurance is cheaper than rental property insurance,  it is an immediate opportunity to inquire regarding the actual occupancy of the home.    

    There is a link  providing an online format to obtain a quote and buy both home insurance and dwelling fire insurance online in multiple States; it may be used by Escrow/Closing Professionals, Mortgage Professionals, Real Estate Agents and directly by Consumers. An exemplary online experience for all!   http://hda.stillwaterinsurance.com
    Answered on May 10, 2014
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