Renting Out Your Home? Make Sure You Have the Right Insurance

As a homeowner, there may be times when you choose to rent out your residence to someone else. This can allow your home to provide a consistent and substantial source of income while continuing to accrue value in your own portfolio. However, by allowing others to occupy your property, you may no longer be able to prevent any incidents that could damage your home. Additionally, as a landlord, you take on significant liability risks. These circumstances demand suitable insurance.

What Kind of Insurance Should You Have When Renting Out Property?

Whether you’re renting out a house, condo, apartment or other type of residence you own, you’ll likely want to explore rental property insurance options. These policies, also known as landlord insurance, can erect a versatile and robust financial shield against many accidents, liabilities and other incidents that may occur inside, around or involving your rental.

In some cases, such as if you rent your home out on a short-term basis, such as using Airbnb, Vrbo or another similar service, you may want to seek out short-term rental insurance. These policies can generally function similarly to standard rental property or landlord insurance, but can be customized to suit the unique risks and needs of rental situations where tenants are often coming and going.

What Can My Insurance Cover?

As a homeowner renting out their residence, you’ll likely want to ensure that your insurance policy includes the following components:

• Structures coverage can assist with repair costs for your home following a covered peril, such as fires, vandalism or some types of water damage.

• Liability coverage can financially protect you if other parties, such as tenants, guests or passersby, accrue losses due to an incident for which you’re at fault, such as failing to maintain safe conditions on the property.

• Personal possessions coverage may assist with losses involving items you leave at your rental, such as furniture and maintenance equipment.

• Lost income coverage may help you recoup rent you would have earned if a covered peril makes your home temporarily uninhabitable and, therefore, unable to generate revenue.

We’re Here to Help

Contact Dan Smith Insurance Agency Inc. today to learn more about coverage options when renting out your home or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.