Other Property You Own
Rental dwelling: A rental dwelling may be a one-, two-, three- or four-family dwelling. The landlord rents out the units or home to tenants. The proper insurance for this arrangement is a dwelling and fire policy. The occupancy will be shown as tenant-occupied. The dwelling should be insured for the replacement value. Coverage can also be added for any personal property owned by the landlord but left in the unit, such as a refrigerator or washer/dryer or even a unit rented furnished. Liability is also suggested for the landlord. Loss of rental income can be added in the event the unit is damaged by fire and the landlord is unable to collect rent until the repair is done.
Vacant dwelling: The standard insurance policy, either a rental dwelling or homeowners policy, has an exclusion in the form restricting the policy coverage if the dwelling is vacant. A vacant dwelling policy can be purchased to restore some of the coverage from those exclusions. There are many companies that provide vacant dwelling policies with many different terms and conditions. It is important you understand these before you make your selection. With some policies the premium is fully earned. Some will have a minimum earned, but let you cancel if the dwelling is sold or occupied.
Secondary dwelling: This is a home used by the owner on a part-time basis – for example, the mountain cabin or lake home. A homeowners policy is needed for this home, providing coverage for the dwelling, contents and liability. Some insurance companies extend the liability from the primary home. A secondary dwelling is not rented out to other people.
Vacation/rental property: Sometimes people own a second home or condo they rent out on a short-term rental. The coverage for this arrangement is specific for this type of ownership and use. It will include the dwelling, contents and liability as needed; but rated for this commercial use.
Under construction: If you have a new home being built, there are two types of coverage available. Depending on the time expected to build the home, you may be able to get a homeowners policy with an endorsement added to show the dwelling is under construction. Once the dwelling is complete, that endorsement would be removed. Another option is a builder’s risk. This policy will be needed if the construction is expected to last a year or longer.
Under renovation: If you have a home that is being renovated several factors need to be addressed. Are you still occupying the home, are you using a licensed general contractor, are you adding structural walls, etc.? Insurance does need to be in place. Our best recommendation is to call WTM with the specifics of your situation so we can help determine the best product.