Does homeowners insurance cover if it is being rented?

No, When you rent your home out to someone your Homeowners Insurance Policy is automatically null and void whether or not you have notified your insurer.

If you have become a landlord you need to purchase landlords insurance for your property. This is done by obtaining a Dwelling Policy with a rental dwelling endorsement.

Just contact your insurance agent and he can help you place the right coverage for your tenant occupied property.