Insurance Question
I have a couple insurance questions:
First I want to move out of my current house and into a new house and use my current as a rental. My insurance and taxes as escrowed for my monthly payment. When I move into the new house how do I go about changing the insurance for a personal to a tenant rental house? How much insurance should I get?
Changing types of insurance is easy. Just go to your insurance company and let them know that you need a landlord/dwelling policy on the property. Basically, this is just fire and damage insurance (no contents, loss of use, etc.).
There are usually stated minimums within each insurance policy. However, you will be required to have at the very least coverage in the amount of the mortgage on the property. Also, if the property can't be added to your homeowner's liability policy, it would be a good idea to get some liability protection, too.
Roger
Find an Agent that can advise you on the proper and best-valued way to protect (and better yet, separate) your "personal" and "business" liability exposures when you have a rental unit(s)...that is, your situation, not a boiler-plate type sales person, but a true advisor. Local REIA-type groups are a good place to start...