Renting Your Home as a Vacation Rental?
Heading out of town this summer and planning to rent your house as a vacation rental? This can be a great way to help pay for your trip or make a little extra income. However, renting out your property, even for a short time, does come with some liabilities that will not be covered by your homeowners insurance policy. It’s important to make sure you have the right policy that provides the coverage you need should something happen while other guests are in your place.
If you are a homeowner that is renting out your property, you will likely need to purchase a homeowner’s insurance policy for rental property. A homeowner’s insurance policy and a homeowner’s insurance policy for rental property are two different policies, and both are different from a renter’s insurance policy.
Homeowners Insurance Policy Coverage
When you are at home, your homeowners insurance protects your home and personal property when damaged by incidents like fire, wind, and theft. It also covers personal liability in the event that a visitor is injured in the home and sues for damages.
Homeowner’s Insurance Policy for Rental Property Coverage
When you are not at home and are renting your property out, you may need an added endorsement or rider on your insurance or you may need a homeowner’s insurance policy for rental property, usually referred to as landlord insurance. This insurance provides coverage for: physical damage to the structure of the home, personal property you may leave for maintenance and/or tenant use (things like appliances and lawnmowers), and may provide coverage for loss of rental income (if you are not able to rent out the property while it is being repaired or rebuilt due to damage from a covered loss).
Renter’s Insurance Policy
If you are planning to rent your place out long-term, it’s a good idea to recommend that your tenant, who is renting a home for their residence, get their own renter’s insurance policy. While your homeowner’s policies protect structure and personal belongings, a renter’s insurance policy protects the tenant’s personal property. This policy may also provide the renter with living expenses coverage, in the event that the home is uninhabitable.
The costs and coverage for each type of policy varies. The best way to get clarity and determine the type of policy that you need is to reach out to a Muntz agent today!
