It’s not widespread knowledge, but vacant property has different insurance requirements than owner or renter-occupied property. Unfortunately, rental property owners and house flippers usually find this out for the first time after having claims rejected by their insurance company.
Did you know if you’re renting your home out, it might not be covered by homeowner's insurance?
It’s not uncommon for someone who owns several rental properties to form a management company to oversee their properties. There are a few different benefits for tax purposes. However, a lot of them do not purchase insurance for those management companies.
Even for investors who have been managing properties for several years, keeping track of all the paperwork and details related to insurance can be a bit overwhelming.
Renter's insurance isn't always top-of-mind for everyone. Either they assume their landlord will take care of them if there's a loss, or they think the chance of a disaster happening to them is unlikely.