Insurance policy on rental property, which is found on bed (8)
I believe the answer is:
coverlet
'which is found on bed' is the definition.
(a coverlet might be put on a bed)
'insurance policy on rental property' is the wordplay.
'insurance policy' becomes 'cover' (insurance cover).
'on' says to put letters next to each other.
'rental property' becomes 'let' (I've seen this in other clues).
'cover'+'let'='COVERLET'
(Other definitions for coverlet that I've seen before include "quilt" , "spread" , "Bedspread" .)