If you own a home, then you already know that you need homeowners’ insurance to protect your investment. However, if you are planning on renting out your home, then it is important that you get the right coverage.
Will My Home Insurance Cover Rentals?
Your standard homeowner’s policy will not typically cover your rentals, as it is designed for “owner-occupied” dwellings. This is because when you rent out your home, it is now considered a business asset. This increases your level of risk, which requires different coverage.
What is Landlord Insurance?
If you plan on renting out your home on a regular basis, then you will need landlord insurance. Landlord insurance has two different types of coverage. The first is property coverage which typically includes dwelling, other structures, and your personal property used to service the rental. The second type of coverage is liability protection. This type of coverage can help you pay for the medical bills and legal expenses if someone was injured on your property, and you were found responsible.
What is Not Covered by Landlord Insurance?
Landlord insurance does not cover regular maintenance expenses to your property. It also does not cover the property you share. This means that if you live on the property and rent out a room to a tenant, then you most likely would not qualify for a landlord policy. In this case, talk to your Insurer about adding an endorsement to your homeowner’s policy to cover the space you are renting out. Landlord insurance also does not cover the renter’s personal belongings.
Are My Tenants Required to Have Renters’ Insurance?
Renters insurance is not required by law. However, your landlord policy will not cover your tenant’s personal belongings. They will have to purchase renters’ insurance if they want to be covered in the case of a loss. Some landlords require tenants to purchase renters’ insurance as a condition of the agreement.
Let’s talk
Your home is likely your biggest asset. Make sure it is protected. Contact one of our experienced Avery Hall agents today at 410-742-5111 for a free consultation.