Insurance question-does this make sense to you?

I own rental properties in which I do not live. They are fully insured and I want an umbrella policy-they’re very inexpensive. I live with my SO in his home. I also have, with the same company, an auto policy. However, they tell me that in order to write the umbrella, I need a “home.” So they insist on writing a “renter’s” policy for my home with him. I don’t pay rent. It’s a minimal amt. for minimal coverage, but this doesn’t make sense to me.

Renter’s insurance? Perhaps it makes sense, some insurance arrangements/companies may require it. I had to awhile back as part of a refi. I am referring to insurance which may cover personal belongings and “up to the studs” or similar. They’re cheap policies. I don’t know the justification, however.

Your rentals are probably covered on a “DP” or dwelling protection form, rather than an “HO” or homeowner’s form, and a DP usually doesn’t include personal liability or personal property coverage.

It sounds odd, but renter’s insurance is on an HO form.

To add to gotpasswords, and that matters because most “umbrella” policies require you to have personal liability of certain limits because they are secondary, taking effect after the primary policy for additional money - that is why they are so cheap, most losses are going to be for less than your primary policy and not even involve the umbrella at all.

If you want a fully customized insurance policy, you’re going to have to insure more than a half-dozen rental properties: for the amount of money it would cost, it would be better to go un-insured.

You might be able to find an agent/company with a contract more like you want, but remember, the companies are like banks: they think the reasonable prudent thing to do is to offer exactly the same contract as everybody else does, and compete on marketing and advertising.

The term “renter’s policy” is simply a unofficial term applied to this type of HO policy providing identical coverage as a standard HO policy with the exception of coverage applying to the structure or dwelling. It insures personal property and provides liability coverage as well as other lessor coverages. Most insurance companies do not sell umbrella policies as stand alone policies because they provide coverage in excess of the primary policy which is usually the HO (in your case “renters”) policy.

Make certain your agent fully understands your purpose in seeking the umbrella coverage and more important, have the agent point out the specific language in this coverage that expands it to include your rental properties. I say this because most “renters policies” exclude liability arising from a business or rental property. Make certain the umbrella policy gives this coverage back because if it does not, you have no liability coverage applying to your rental property in the event of a loss…