Do you want to rent out your home? There are a number of different scenarios where a homeowner may wish to rent out their home. You may want to rent out your home as a vacation rental, long or short term rental, or even rent out a single room. As the homeowner you will still need to provide homeowners insurance even though you plan to rent it out. However, when renting out your home to a tenant(s) your original homeowner insurance policy may not cover the losses that may occur. You will want to consider seeking a more specialized homeowners coverage policy when you want to rent out your home. InsureWise LLC will share a few thoughts about homeowners insurance coverage when renting out your home.
Insurance for Short Term Rental / Primary Residence
Each homeowner will have a different vision or plan on how they will rent out their home. If you wish to rent out part or all of your primary residence for a short period of time, there are two types of insurance scenarios that you will what to consider. A short term rental often describes a weekend or week long rental agreement and not months or years. It is important to know how an insurer looks at a short term rental to better get the right type of insurance. Here are the two short term insurance scenarios:
• Some insurance providers may allow a homeowner or renter to cover a tenant under the current policy, however you will need to notify your insurance company. Other insurance companies will require an endorsement to add to the existing insurance policy.
• If you plan to rent out your home for a short term on a regular basis to guests, this now is considered a business. A standard homeowner policy does not provide coverage for a business. You will need to get a business policy. Seek a policy that is similar to a hotel or a bed and breakfast policy to legally cover your home.
Long Term Rental / Second Home Insurance
If you have a second home that you wish to rent out on a longer term basis, typically anything over six months, you will need a landlord or rental dwelling policy. It is very common for homeowners to rent out a second home to a person, couple or families for a long term dwelling. Many people with poor credit cannot afford to buy a home and need something bigger than an apartment. This is where house renters have become very popular. If you want to rent out your home long term, you will need a landlord policy. A Landlord policy will cost about 25% more than the average homeowners policy. This inflation is necessary as many renters will leave the home in a poor condition. You, as the landlord, will find you need to repair and restore the home after many renters.
A Landlord policy provides property insurance coverage for physical damage to the home’s structure from fire, lightning, wind, hail and ice. Landlord policies also cover on-site maintenance which includes appliance repair, lawnmowers, and other equipment used to maintain the property. Landlord policies cover liability coverage in case a renter or tenant gets injured on the property. Some landlord policies will also cover losses of rental income. If a tenant does not pay rent or in the event the home is being repaired due to an unforeseen accident, the loss of income will be covered.
Renters Insurance Policies & More in Las Vegas, Henderson, Reno, North Las Vegas, Summerlin, Paradise, Spring Valley, Sunrise Manor, Enterprise, Sparks, Carson City & State of Nevada
It is important if you plan to rent out your home that you are properly protected. For quality insurance coverage, contact InsureWise LLC today or fill out this quick quote form to get started.