If your rental property is damaged will your homeowners insurance pay? The worst thing that can happen to a rental property owner is when their rental sustains major damage and the insurance company refuses to pay. One example is when the property is vacant. One of our owners had a vacant house that was rent ready but the new tenants had not moved in yet. The house was vandalized. The thieves stole all the appliances, hot water heater, HVAC unit and all the electric wires were pulled out of the walls. Because the house was vacant the insurance would not pay. Ouch!
Another example is when an owner moves out of their personal residence and does not tell their insurance company the house is now a rental. If the tenants cause the damages the insurance company may not pay. Of course tenants should get rental insurance for their personal belongings but often they do not even though it is inexpensive.
Landlord insurance has other benefits like covering lost rent if there is a flood or fire or the house is damaged by the tenants. Moral of the story is call your insurance agent and review your coverages to make sure you have the right insurance.