Apr 16, 2015
Renting out your home can be a great way to earn extra income, but it comes with extra risks. Make sure you are protected with the right insurance policy—in most cases, your homeowners insurance won’t be enough.
The first thing to consider when choosing an insurance policy is how often you’ll be renting out the home. Consider the following situations:
Short Term Rentals
Occasionally Renting Out Your Primary Residence
Some people may want to rent out their primary residence for a week or so during the year while they go on vacation. In this situation you may be able to add coverage under your homeowners insurance policy—just be sure to contact your insurance agent before you find renters.
Regularly Renting Out Your Primary Residence
If you plan to rent your primary residence out on a regular basis—for instance, every weekend—you probably need business insurance.
Long Term Rentals
Renting Out Your Secondary Residence
If you own a second home, or if you aren’t currently living in the home you own, you may decide to rent it out for 6 months to a year. In this case, you’ll need to invest in landlord insurance.
(Source: Insurance Information Institute)
Landlord insurance is less common than other insurance policies, so here’s an overview.
Landlord insurance will not cover:
Landlord insurance will cover:
Anyone renting out his or her home for a long period of time should purchase landlord insurance. Renters are less invested in protecting your home and may behave recklessly or forget to report maintenance issues. Protect yourself and your home with a landlord insurance policy—it is worth the investment.