Having the wrong type of insurance policy can leave you completely exposed if you suffer a major loss. Whether you've turned your first house into a rental property, own a seasonal or vacation home, or have a property sitting vacant, standard homeowners insurance only applies if you actually live there as your primary residence.

Insurance companies price policies based on risk—and a tenant-occupied, seasonal, or vacant house presents a completely different risk profile than an owner-occupied primary home. If a major claim happens and your policy type doesn't match how the property is actually used, you could face a serious coverage issue or a completely denied claim.

The good news? Updating your coverage is often a quick call to your agent or carrier, and switching to a landlord, vacant, or specialty policy is usually far more afforda ...