When you rent out your property, you are required to have a different type of policy. When you live in your home, you will have a primary home insurance policy; when you rent out your property, you will have a dwelling fire policy. There are a few things that can balance out the payments for a dwelling fire policy to make them similar to home insurance policies, but essentially dwelling fire policies are considered higher-risk, so the premium can sometimes be higher.
With a dwelling fire policy, you will typically go without or have a lower amount of personal property coverage. This is because you will have few or no belongings in the home to insure, unlike the tenant, and lower coverage can mean lower payments. However, since the owner does not live in the home, the insurance company may consider this situation to be higher-risk. This is because the tenant does not have what is called “pride of ownership,” which means they may not be as careful in the home as someone who has a financial interest in the property.