Why You Need Insurance When You Are Renting Out Your Home

​Do you have an income property or vacation home? Whatever reason you have for renting out your home, it is essential to talk to your insurance agent. You may need to have a specialized insurance policy, as the standard insurance may not have the coverage you need. 

​For Primary Residence Or Short-Term Rentals
If you are renting out a part or your entire house, for example, during the weekend or for a few weeks, there are ideal scenarios for your insurance. If you notify your insurance company beforehand, they may allow you a short-term rental in your renter's policyholder or homeowners insurance. But, your insurer may require you to have a rider or endorsement to your current insurance before giving you coverage.

If you are temporarily renting out your residential property but on a regular basis, this would be considered as a business. In this case, you need to buy business insurance as the standard homeowner's policy does not cover this kind of business activity. 

Second Home Or Long-Term Rentals
If you are leasing your home for a longer period such as one year, you would need a rental dwelling or landlord insurance. Buying this means getting additional protection. This also applies when you are renting out your investment property or vacation home on a regular basis. 

Landlord policy provides coverage if the structure of your home acquires physical damage due to snow, ice, hail, lightning, or fire. You also get coverage for your personal property that you allow your tenants to use such as snow blowers, lawnmowers, and appliances. 

If you are experiencing loss of rental income due to property repair or rebuilt, your policy can provide coverage for a specific period. Also, if a tenant or a house guest gets into an accident in your property, you have liability coverage for this situation. 

Renters Insurance
In general, the coverage you receive from your landlord insurance is for the structure of your property itself. This policy does not cover the personal belongings of your tenants. Make sure to ask your tenants to purchase their own renter's insurance to avoid disputes in the future. 

Conclusion
Before you close a deal or sign any lease with your prospective tenant, it is important that you both have the right insurance.

At Black and Associates Insurance, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (509) 464-0058 or Click Here to request a free quote.