Whether it’s a small part of your house or the entire property, renting out the unused spaces can help you make some extra income. However, before that, you need to consider making a few changes to your homeowners insurance policy to ensure your property is protected.
Changing Homeowners Policy
The homeowners insurance for a house on rent doesn’t work the same way as it does for the property owner. Your homeowners coverage will protect your belongings and the property.
If you are renting your home, you will need to change your coverage to a rental property insurance policy, which will protect your home structure and the personal belongings you leave behind.
If you are directly responsible for the injury suffered by a tenant or visitor on your property, the rental property insurance will cover the medical and legal costs associated with it. As the rental property insurance policy will not cover the tenants’ personal properties, its rates will probably be lower than your homeowners insurance policy.
Things to Consider Before Renting Out Your House
Before renting out your property, you should contact your insurance provider and discuss the changes. Otherwise, any damages caused by the tenants won’t be covered by your insurance.
It is better to change your homeowners insurance to a rental property insurance policy before your renters move in. Also, make sure your tenants have renters insurance as your rental property insurance won’t cover the damages caused to their personal belongings. If they do not have renters insurance, ask them to buy one.
These are some of the things you need to know about homeowners insurance for a house on rent. For assistance in getting the right homeowners insurance policy, contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. We are ready to assist you with all your coverage needs today.