Do I need extra insurance if I rent my house?
Renting a home is a good way to earn money bonus. In many cases, the income is enough to pay the mortgage and still have money left. However, owning a rental property is not without risks. Tenants have no stake in your property and you may not care for the way you would. If you rent your home, assess the amount of homeowners insurance you have in the house. Perhaps you may have to increase your limits or you buy a cover to protect your property additional damage or liability exposure.
People who own one or more rental properties need additional insurance because of increased liability exposure. The owners run the risk of being sued for simply owning the property. They have increased liability exposure because they can not control what happens in the rented premises. If a tenant is involved in dangerous activities, the owner could be liable if someone was injured on the property. An integral or personal catastrophe policy covers liability claims that exceed the limits of a home or the insurance policy of the owner of such property. A policy will help you comprehensive eliminate or reduce some of the risks of renting the house.
A homeowners insurance policy is the coverage that homeowners buy to protect property rented to tenants. An insurance policy homeowner is intended for building occupied by this. If you rent your home, protect against structural damage by purchasing a homeowners policy. This policy insures the structure of the house, but does not cover any personal belongings from your tenant so it is generally less expensive than full insurance policy homeowner. The coverage extends to other structures such as a garage, awnings and sheds attached or separated. A homeowners policy pays for loss due to fire, theft, vandalism, weather damage and injuries on the property. Tenants must purchase renters insurance to protect your belongings and personal content such as furniture, electronics, clothes and utensils.
Using the house
You must purchase additional insurance based on how they plan to use your property for tenants. If you are planning to start a business at home, find out if customers visit the property. If you have children or pets, find out how many children and breed of the pet. If the son of a tenant is injured on the property or have a friend who gets hurt, you could be responsible and you would have to pay for this. Also, if your pet scratches or bites a tenant guest, this can sue you and your tenant. Acquire insurance to cover the many risks you assume in rent to a tenant in particular.
Before you rent your home, make sure your tenants buy their own tenant insurance policy and give you a copy with the signed contract. If you allow your tenant has a pet or put a business at home, be sure to approve the nature of business or race mascot before the move.