Opening up your home for
others to rent has its advantages, like added income. But do you know what you’re covered
for in case of injury or damage while renting your property to someone
else? Read on to learn about a few important things to know before renting out
your home.
Do a thorough inspection of your property before your tenant arrives
Property owners are responsible for keeping
their property safe, inside and out. If someone leans on a
broken porch railing and falls, resulting in an
injury, you can be found at fault for their injury. Before anyone enters your
property, make sure you inspect every inch of it. Look for things like tripping
hazards, ample outdoor lighting, secure railings and slippery floor surfaces. Also, check that all windows and doors lock properly and make sure
your heating and plumbing is functioning. Most homeowners policies will protect you against injury on
your property for your immediate family and guests, however, if you’re renting
to someone else you likely will need additional coverage. We also recommend taking
thorough photos of your home before prior to renting. This way, you have ample
documentation of the prior condition to resolve any issues should renters cause
damage or theft.
Get full details on what you’re covered for and what you should purchase
Insurance can become murky when it comes to renting
your home through a home-sharing site, such as Airbnb. Your insurance company
may consider renting your home as a business, in which you would need adequate
insurance to cover any losses aside from your homeowners policy. This is one of
many reasons why it’s crucial that you check with your insurance agent
about what type of coverage you will need if you want to rent your property.
Home-sharing sites may offer some protection
to property owners. For example, the free Host Protection Insurance from Airbnb includes
up to $1 million in liability insurance covering claims for bodily
injury or some types of property damage. However, the free protection doesn’t
cover every situation you may encounter as a property owner, yet another reason
to discuss your coverage options with your insurance agent.
Encourage your tenant to purchase Renter’s Insurance
The coverages recommended by your agent should
keep you, as the property owner, protected in the event of a loss, but what
about items that don’t belong to you? Because your current policy likely won’t
cover your tenant's personal property you should suggest
that they purchase Renter’s Insurance. Although not required, by explaining the
specifics of what is covered in the event of a loss to the property you can help them avoid paying out of pocket for common
incidents like potential theft. This will help keep your investment protected as well.
Know what your insurance will cover
A standard homeowners policy likely won’t
cover damage to your property that happens when it is being used as a rental property. If you are planning to
rent your property out, you may need a landlord policy in place to cover the
house and items within it. Sit down with your local agent to discuss what
options will protect you and your property most when it comes to offering space
to renters.
Offering your property to others as a rental unit is a
great way to earn extra income. Keeping these things in mind when renting out
your home can help you avoid costly mishaps down the road. Click the button
below to find an agent near you who can best ensure your coverage is adequate
before your next tenant arrives.
