Is it safe to rent a house more expensive than for a primary home?

Normally insurance for rent a house costs 20% more than the primary home insurance. Insurance companies apply a pricing policy based on risk, and insurers feel that in the properties for rent, as they are generally unoccupied for periods of time, is more likely to remain unnoticed problems that eventually lead them to make disbursements for insurance in the houses are permanently occupied.


A small leak in the piping system in your home could cause serious injury due to putrefaction and mold, while a faulty wiring or a gas leak could cause fire. Probably notes such problems in your primary home, but a leak of some sort in your house for rent may take several weeks to be detected. In addition, vacant homes tend to attract vandals more than the houses are occupied permanently. Damage due to termites, rats or other animals may take longer to be seen in a house for rent in a house that primary. Anything that increases the possibility of an outflow for your insurance causes your insurance premiums increase.

 rent a house

Property Type

Investors often buy condos for rent, but security policies for these properties are often more expensive than regular homes. Apart from the cost of insuring your own unit, you also have to pay part of the cost of insuring the entire building in which your unit is located. Other investors buy houses for rent located on the coast, where insurance costs are higher due to the threat of hurricanes and flood damage. If you invest in a home for rent in a low-income area in the city, the cost for insurance is often adjusted upward due to higher crime rates. Therefore, your insurance costs for a house for rent is affected by the type of property you buy.



When you rent a property you should always buy liability insurance to protect against lawsuits that have to do with your tenants. If one of them is injured on your property for you, you are responsible for paying your medical bills, and in many states tenants injured may sue for injuries against you beyond mere cost of medical treatment. If you do not buy a liability insurance you must address such demands of your own pocket. However, investors usually purchase liability insurance even increase the overall costs of insuring a home to rent.



To reduce the total cost of securing a property for rent, many home owners require tenants to purchase insurance that provide them with cover in the event of theft or damage to personal property. You can usually get a discount on your comprehensive insurance costs if insurance for both your primary home or the rental shop with the same insurer. In addition, if you install fire alarms, smoke detectors, burglar alarms and other security devices in your house for rent, you can lower the cost of your insurance.