Insurance for Renting Out Your Home
Renting out your home? In the summer months many of us that live in Connecticut or Massachusetts live an area others are sizing up for their summer trip. Some may consider renting out their home for extra money, others may have a second home that they regularly rent out during the summer months. Whenever you open your doors to renters you open up the door for more issues, especially when it comes to insurance.
Before renting your home, be sure you understand what your home insurance covers and what it does not. It is essential you call your agent before you rent so that they can talk you through your coverage and let you know if there are changes of additions you need to make to your various policies. It’s better to be sure, as opposed to thinking “sure I have enough coverage” and later finding out that you were wrong.
In addition to you speaking with your agent, you may want to include language in the contract that certifies the renter has the insurance coverage they need to cover issues they may be liable for. If renting for a short time, their main home insurance or renters insurance should cover their belongings and liability issues that may arise. Be sure they have home insurance or renters insurance. If it is a long term rental, encourage them to get renters insurance.
Here are some FAQs about Summer Rentals:
When do you need landlord insurance v home insurance?
This varies company to company. It is important to check with your agent or specific carrier about your home insurance coverage before you rent. Some carriers will allow up to 4 weeks, while the state program in Massachusetts allows up to 10 weeks. The policy must be endorsed to provide coverage for theft while rented.
Should you check the insurance of guests?
This is always advisable. While the homeowner may be liable, specific situations could fall on the renter; such as someone tripping over items left in/on a walkway by the renter – if you are able to go to the renter for liability you may avoid a claim! If they have renters insurance or home insurance both you and them will be in a better place.
What liability issues are there when renting?
I asked an agent this question and got the response “endless” that should be an indication of the amount of issues that can come with renting. From home accidents that could lead to fire, to break-ins, to someone being injured on your property the list goes on and on.
Should I consider an umbrella policy when I’m a landlord?
Yes, we would always recommend the additional liability protection when you have a rental exposure. As we have mentioned in other questions, there is an increased liability risk for people renting out there home. An umbrella insurance policy gives you that extra liability that can really be the difference maker in difficult times.
What if you leave your car or boat for the renters to use?
The auto policy requires that any/all “regular” users be listed; the question that becomes what is regular. This may be determined by the length of time the vehicle is available for use. In all such situations, both car and boat we highly recommend that you discuss this with your agent.
Give us a call before you open your doors at 888.865.1244! Just before you rent out your home, give your agent a call and they can walk you through any coverage changes or updates you need before renting out.
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