If you own a Rental home or rental unit up to 4 families be sure you have good policy to protect the building and loss of rents. Typically the insurance companies will use a Dwelling Policy Form 3(DP-3) for the properties covered for rebuilding cost or a Dwelling Fire Form 1(DP-1) for the Actual; Cash Value or Market Value Policies.
Assuming the rental property is in good shape(newer roof, updates to electrical and plumbing, no peeling exterior paint etc) go with a DP-3 type of policy. The reason is a DP-1 does NOT provide coverage for broken water pipes and most covered losses would be treated on ACV basis.
A landlord should also require proof of the tenants Renters Insurance Policy on file, this way if a tenant causes a fire or destroys the interior prior to moving out the landlord may have some recourse, in fact request that the landlord is listed as a Renter notification. This notification requires the insurance company notify the listed party in event a policy threatens to cancel.
Any further questions please contact Flanigan Insurance at 314-727-6000 or email me at email@example.com