If you are renting out your house, homeowners insurance alone won’t help. While it covers your property, it doesn’t protect your tenants or their belongings. To make sure both your property and tenants are insured, certain adjustments should be made in your policy. Here’s what you need to consider before making any decision.
Does My Homeowners Insurance Change If I Rent My House Out?
You should consider the duration you expect the tenant to be in your house. If it’s a month or less, then the renter can be viewed as a visitor. This would, in most cases, not require a change in your insurance policy.
However, if your tenant is planning to reside on your property for long time, then specific changes are crucial in your house insurance and rent rates.
How to Change Your Homeowners Insurance While Renting Your Home Out
Obtain Additional Coverage
To protect residents or their possessions, you can include additional coverage to your existing policy. Inform your agency about the lease, and make the changes they suggest. The insurance rates for renting out your house are likely to remain unchanged.
Re-Write as Dwelling Fire Policy
A homeowner’s insurancepolicy is highly specific when it comes to who or what it covers. To get past the loophole, you can change the insurance policy to a dwelling fire policy. In most cases, your insurance rates will remain the same.
Encourage Tenants to Get Renters Insurance
Although not mandatory, getting renters insurance will compensate your tenants in the event of any damage or loss of possessions. Moreover, it will cover your property – allowing you to safeguard your investment.
These are some of the changes you should make to your homeowners insurance policy if you plan on renting out your house. Regardless of where you live, the right coverage can protect your assets and give you peace of mind. For assistance with all your insurance needs, contact the experts at John E. Peakes Insurance Agency today.