What to Know About Home Insurance When Renting Out Your Property

In addition to providing lodging for you and your family, homes can also represent potentially valuable sources of income. If you own a home but choose to rent it out rather than live there yourself, you might enjoy lucrative rent while helping to provide temporary housing in your community. However, when renting out your home, you’ll need to consider certain complications regarding insurance, as how you use a residential property can impact coverage capabilities and needs.

Can a Standard Home Insurance Policy Cover Rentals?

Generally, no, you should not try to cover a home you’re renting out to others with standard home insurance. These policies are typically intended for dwellings where the policyholder lives and uses the insured property as their primary residence. As such, restrictions and exclusions may apply should you choose to rent out a home, potentially leading to insufficient coverage and costly out-of-pocket losses.

What Type of Insurance Do I Need?

Whether you’re renting out a house, apartment or condo, you should explore rental property insurance policies. Also known as landlord insurance, this type of coverage can offer tailored financial protection for homeowners who choose to rent their properties to other parties. Specifically, a rental property insurance policy may consist of the following coverages:

• Structures coverage can cover the physical elements of a home, including its walls, roof, foundations, attached fixtures and plumbing and electrical systems.

• Personal property coverage can help manage losses involving items you leave on the premises, such as maintenance equipment.

• Landlord liability coverage may offset tenants’ and other third parties’ losses for which you’re at fault, such as if someone is injured or their property is damaged because you failed to adequately maintain the property.

• Lost income coverage may compensate you for rent you would have earned if your rental property is rendered temporarily uninhabitable due to a covered incident.

Additionally, if you plan to rent out your home on a short-term basis, such as using services like Airbnb and Vrbo, you may need to ask your agent about specialized short-term rental insurance.

Get the Right Coverage

If you’re looking to rent out a home in Richmond, VA, contact Latinos Services today to discuss your needs and coverage options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.