Cost<\/strong><\/td>\n| $1,200\u2013$2,000\/yr avg<\/td>\n | $1,478\u2013$2,500\/yr avg (15\u201325% more)<\/td>\n<\/tr>\n | \nWho lives there<\/strong><\/td>\n| Owner-occupied<\/td>\n | Tenant-occupied<\/td>\n<\/tr>\n | \nPersonal property<\/strong><\/td>\n| Covers owner’s belongings<\/td>\n | Does NOT cover tenant belongings<\/td>\n<\/tr>\n | \nLoss of use<\/strong><\/td>\n| Covers alternative living costs<\/td>\n | Covers lost rental income<\/td>\n<\/tr>\n | \nLiability<\/strong><\/td>\n| Standard premises liability<\/td>\n | Enhanced landlord liability (tenant injuries)<\/td>\n<\/tr>\n | \nVacancy clause<\/strong><\/td>\n| 30-day vacancy limit<\/td>\n | 60-day vacancy limit (some carriers 90)<\/td>\n<\/tr>\n | \nRequired by lender?<\/strong><\/td>\n| Yes (mortgage requirement)<\/td>\n | Yes (investment loan requirement)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n Critical mistake:<\/strong> Some new investors keep their homeowner policy after converting a primary residence to a rental. Homeowner insurance does NOT cover tenant-occupied properties. If a tenant is injured and you have HO-3 instead of DP-3, your claim will be denied. Always switch to a landlord policy before placing tenants. Per the Insurance Information Institute (III)<\/a>, the average homeowner claim is $15,000\u2013$20,000 \u2014 denied claims on a wrong policy type can be financially devastating.<\/p>\n<\/span>Frequently Asked Questions<\/span><\/h2>\n | | | | | | |