Insurance Considerations for Renting Out Your Home 

Owning a home is already a significant responsibility requiring ample financial resources. However, if you plan to rent out a residential property to tenants, you may need to be even more careful to ensure you have proper loss control measures in place. That’s where the right insurance considerations can play a crucial role, potentially ensuring you and your tenants are financially protected from accidents and other unexpected situations.

What Insurance Considerations Do You Need?

Standard homeowners insurance is not typically sufficient for the coverage needs of a home you may be renting out. Instead, you should familiarize yourself with landlord insurance.

Also known as rental property insurance, these policies can establish essential financial protections for many common liabilities and incidents that might impact your interests or home, including fires, theft and some natural disasters.

What Does Landlord Insurance Cover?

Landlord insurance can offer versatile coverage and allow you to file claims following various losses. Specifically, many policies may include the following components:

• Buildings coverage—This can assist with repair, rebuild or restoration costs if structural elements of your rental property, such as walls, roofs and electrical systems, are damaged by covered perils.

• Possessions coverage—While this won’t cover tenants’ belongings, it can financially protect belongings you leave at the rental, including maintenance equipment, tools and furniture.

• Liability coverage—If you’re accused of being at fault for other parties’ losses, such as if tenants or their guests are injured due to poor maintenance, your insurance may assist with financial ramifications.

• Income coverage—This part of your policy may compensate you if you’re temporarily unable to collect rent on your home due to a covered incident.

What About Short-term Rentals?

In recent years, many homeowners have begun renting out their properties on a short-term basis. Whether you’re using Airbnb, Vrbo or another platform, renting to tenants in this way may entail unique risks and exposures.

Fortunately, many insurance carriers have adapted to this new trend and may offer specialized short-term rental insurance.

While this type of coverage may include many of the same coverage components as traditional landlord insurance, these policies can often be specifically tailored to meet the unique needs of those renting out properties to various parties for abbreviated stays.

We’re Here to Help

Contact Pride Insurance Agency today to learn more about coverage options when renting out your home or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.