What Kind of Insurance Do I Need If I Rent Out My Home?

Rental Home


What You Need When Renting a Whole House Full-Time

One of the factors to consider when renting out your home is how much and what type of coverage you need, based specifically on how you plan to rent. The most typical situation is renting out a house full-time to a renter or tenant.

In this situation, the rental house insurance you need is called rental dwelling insurance. What is a dwelling policy, and how can it help you as a property owner and landlord? It covers your personal liability if someone is hurt on the leased property. It may also include the replacement of lost rental income (though this is an addition to the standard policy) for situations where the property needs extensive damage or must be rebuilt.

For most rental homes by owner, you want a rental dwelling insurance policy that will protect against theft, vandalism, and other risks. It should include the family unit dwellings along with any detached structures on the property.

Before you rent out your home, make sure you have insurance in place to protect it. You can get a quick quote now online that will outline your specific needs and provide you with insight into what it will cost.

What You Need if Renting on a Short-Term Basis

If you plan to offer your house for rent by owner for a shorter term, you need to consider adding a special endorsement to your existing policy. This applies to any situation where you are renting out your home for a month or less at a time.

In these situations, the house for rent by owner is going to face a few additional risks. Short-term renters may be at a higher risk to the well-being of your property simply because there are more people coming in and out of it. We recommend speaking to our agents at Peterson Insurance for a customized quote to fit your property’s specific level of use.

Adding Coverage for Renting Out a Room to Your Current Policy

What if you need rental house insurance for just a small portion of your home? If you have a spare bedroom or a portion of your basement you wish to rent out, you need to let your homeowners’ insurance company know about that goal. Do not assume that you will have coverage in the event that there’s a problem with the home at some point, such as a renter causing a fire.You can often add on to your current policy to allow for the spare room rental insurance. However, the availability of this feature differs by insurance carrier. The key here is that if you plan to rent out a room in your home, you should contact your insurance agent about your goals. We can recommend additional types of insurance protections or add this type of coverage to your existing policy, ensuring you do not have to worry about added risks.

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