Insuring Rental Property under a Homeowners Policy is Just Plain Stupid


Read the full article at https://www.linkedin.com/pulse/video-explaining-why-never-prudent-insure-rental-zalma-esq-cfe and see the full video at https://youtu.be/uneE7c_OLuY and at https://zalma.com/blog plus more than 3600 posts. 


It is axiomatic – a certainty – that most people do not read their insurance policies nor do they always use insurance to protect themselves properly. State Farm tried to help its insured. It explained to Paul Terrell and Rica Tseng that they needed a rental policy on their rental property and they bought it. They decided, later, to move into the rental property and changed the policy to a homeowners policy but they didn’t move in. Instead, they rented it out but never changed the policy back to a rental policy.


That clear and obvious mistake resulted in a no coverage decision in Paul Terrell et al. v. State Farm General Insurance Company, A152541, Court of Appeal of the State of California First Appellate District Division One (September 26, 2019).