Renting out homes seems to be very popular in the last few years for many reasons.
Did you know if you rent a home you need to get a specialized insurance policy. Your homeowners policy voids when no owner occupied after a certain number of days. So be sure to contact us to get your dwelling fire insurance policy with liability coverage for landlords. Your first step should be to call your insurance agent or company representative. Depending on the rental scenario, your standard homeowners policy may not cover losses incurred while your home is rented out, and you may require a more specialized insurance policy.
If you are planning to rent out your home you will likely need a landlord or rental dwelling policy. Landlord policies generally cost about 25 percent more than a standard homeowners policy because landlords need more protection than a typical homeowner. If you are renting out a vacation home or investment property, this would also require a landlord or rental dwelling policy.
Landlord policies provide property insurance coverage for any physical damage to the structure of the home caused by fire, lightning, wind, hail, ice, snow or other covered perils. It also offers coverage for any personal property you may leave on-site for maintenance or tenant use, like appliances, lawnmowers and snow blowers.
The policy also includes liability coverage; if a tenant or one of their guests gets hurt on the property, it would cover legal fees, due to injury claims, and medical expenses.
Most landlord policies provide coverage for loss of rental income in the event you are not able to rent out the property while it is being repaired or rebuilt due to damage from a covered loss. This coverage is generally provided for a specific period of time.
As the landlord, your coverage is only on the structure itself and your financial interest in it. Your tenant’s personal possessions are not covered under your policy. In order to avoid disputes in the event of damage to the renter’s belongings, many landlords require a tenant to buy renters insurance before signing a lease.