A Dwelling/Fire policy provides protection for a property that you own but do not occupy. This could cover not only the structure of the house or portion of the condominium you own but can also have some coverage for contents and liability protection. The Real property coverage is limited as compared to a homeowner policy. Losses for both the dwelling and contents are for specified perils only.

COVERAGE (A) DWELLING

This amount of insurance applies to the dwelling and attached structures. The limit of insurance for the dwelling should be based on the replacement cost of the structure. Replacement cost is not available in non-owner occupied situations. Any losses would be paid on an actual cash value basis.

COVERAGE (B) OTHER STRUCTURES

There is no amount automatically applied for Other structures such as a garage, fence or shed. This amount can be added.

COVERAGE (C) PERSONAL PROPERTY

The stove, refrigerator, washing machine or other appliances would fall in this category as well as any furnishings you may have left in the dwelling or rugs on top of finished floors.

Some companies may automatically give you $5,000. With other companies an amount will need to be added to protect property owned by you and left for the use of the tenant. This coverage will never apply to cover a loss to the tenant’s property.

COVERAGE (E) PERSONAL LIABILITY

Liability coverage should also be added to protect you as the owner of the property. The liability can be on the Dwelling Fire Policy or could be carried on the property owners personal homeowners policy as Additional rented property liability. If a claim is made or lawsuit brought because of bodily injury occurring on the insured location this coverage would defend you as the owner, and your family, for any negligence held against you. In addition to the limit chosen, the liability coverage also provides additional coverage for defense costs and other expenses as long as there is found to be negligence on your part as the owner. This coverage will not extend to cover your tenant and any negligence they might have had in causing the claim.

COVERAGE (F) MEDICAL PAYMENTS

This coverage would pay the necessary medical expenses for bodily injury of others. Coverage applies to accidents that occur on the insured location and caused by an action of the insured. An

example of this would be slipping on ice when it is the landlord’s responsibility to keep walkways clear. The coverage has a basic limit of $1,000 per person. This amount can be increased.

TENANT RELOCATION

If the dwelling is for more than a one family, then tenant relocation must be added. This would cover the tenant’s additional expenses if they could not live in the dwelling due to a loss.

Another method for determining payment for loss of use is fair rental value, which is the amount of rent that could be reasonably be charged for the premises, less any expenses that do not continue while the premises are unsuitable for living.

When renting out property that you own it is a good idea to make sure that you as the landlord do not provide coverage for any of their property nor for any claims or law suits that may occur due to their actions. Some landlords require that their tenant carry a tenant policy. This could keep the dwelling owner from being named in a suit for bodily injury or damages caused on the property by the tenant who have no coverage for the injured party to recover from.