Do You Need Different Insurance for Your Crestview Rental Property?
If you’re turning your Crestview home into a rental property, one of the most important and often overlooked steps is updating your insurance policy. Many new landlords assume that their standard homeowner’s insurance will cover a rental, but that’s not the case.
The quick answer? Yes, you do need different insurance for a rental property.
In this article we talk about what Crestview homeowners should know about insurance before renting out their property from a Crestview property manager.
Homeowner’s Insurance vs. Rental Property Insurance
A homeowner’s insurance policy is designed for owner-occupied homes - properties where you live full-time. Once you start renting out your home, your insurance needs change dramatically.
That’s when you’ll need to switch to a landlord insurance policy, sometimes called a “dwelling fire policy.” This policy type covers you differently because you’re no longer the one living there, tenants are.
Landlord insurance typically includes:
Property coverage for damage caused by fire, wind, or other covered events
Liability protection in case someone is injured on your property
Loss of rent coverage if your home becomes uninhabitable due to a covered claim
If you continue with your homeowner’s policy after renting out your home, your insurance company may deny claims even for legitimate damage because your policy no longer matches how the property is being used.
Notify Your Insurance Company Before Renting
Before you list your Crestview home for rent, call your insurance provider and let them know you’re converting your property into a rental. They’ll help you transition to the right type of policy.
This step protects you from costly coverage gaps. If your insurer isn’t aware that the home is occupied by tenants, they may refuse to pay out for accidents, storm damage, or even total losses leaving you fully responsible for the repair or rebuild.
What to Include in Your Rental Property Coverage
Florida homeowners face unique weather-related risks, so when you’re setting up your new landlord policy, make sure it includes key protections for our area.
Consider adding:
Hurricane coverage (essential in Northwest Florida)
Flood insurance, especially if you’re in a low-lying area
Windstorm protection
Liability coverage for accidents or tenant injuries
As a general rule, you should aim for a minimum coverage limit of around $500,000, or enough to fully rebuild your property in today’s market.
It’s worth discussing these options in detail with your insurance agent to make sure you’re not underinsured or overpaying for unnecessary coverage.
Why Having the Right Insurance Matters
It might seem like a small detail, but having the wrong insurance policy could cost you thousands. If your insurer discovers that your “homeowner’s policy” property is actually being rented out, they may not honor claims for damage, theft, or liability.
Having the correct rental property insurance ensures:
You’re legally compliant
You’re protected financially
You maintain peace of mind knowing your investment is covered
Your rental property is an asset - one that deserves proper protection.
Final Thoughts
If you’re converting your home into a rental, updating your insurance policy is a must. It’s one of the simplest yet most critical steps to safeguard your property and your finances.
At Kuntz Property Group, we help Crestview homeowners through every step of the rental process from preparing the property and finding qualified tenants to ensuring you have the right insurance and legal protections in place. Need more help understanding the insurance process of having a rental property? Contact us today to schedule a consultation or receive a rental analysis!
