By: William Forbes
We've seen an increase in the number of our clients who have decided to rent their houses out, rather than sell them. If you plan to do this, it's important to adjust your home insurance policy to be sure you are properly protected.
First, you will want a renters policy, which will protect your home's structure and the small amount of personal property (furniture, decor, etc.) you may have inside the home. You'll also receive liability coverage, in the event that someone is injured on the property.
But, almost more importantly, carrying a renters policy as a landlord will provide protection if there is a home claim that prevents your renter from living on the property for a time. In this case, your renters policy would provide up to 12 months of fair rental value. This means during the time the house is out of commission, you will not lose the rental income that typically comes from your renter.
Once you become a landlord, it is also important to talk to your renter about carrying his/her own renters policy. This protects a renter's personal property, and provides important liability coverage to your tenant. It might also be beneficial to be listed as an additional insured on your tenant's policy, which provides you an important line of sight to his/her policy and coverages.
Give us a call if you have questions about renters or tenant policies.