When you own a rental dwelling, or the property you own is vacant, the risk dynamics from an insurance standpoint changes.  The logic is that you, as the owner, will always take better care of your property when you are living there than someone who is just renting it from you.  So the chance of a property OR liability loss are significantly greater when you rent your home.  Also, your contents are typically not left in the home when you are renting, so this becomes an ‘add in’ coverage, if you need it.  So the answer to this question is NO, your Homeowners policy does not cover your rental property.  Instead you need what’s called a Landlord or Dwelling Fire policy.  This policy offers liability coverage and can include contents coverage if you have a home you’re renting that has furnishings included.   Many people do not realize that once you start renting your home that a new policy needs to be put in place, otherwise you run the risk of a claim declination. 

One other important consideration … make sure you put into your rental agreement a requirement that your tenant obtain Renters insurance.  They should be required to obtain at least $500,000 liability. This is protection for both of you in the event that the tenant is responsible for a claim situation.  A tenants policy is usually under $200 per year!