Looking for a way to supplement your income? For people moving into a new home or who already own multiple homes, renting the property often seems like a great way to bring in extra cash. While this can be lucrative, you need to take steps to protect yourself should you incur lawsuits or your property become damaged. Do you want to rent your home? Then you may want to learn more about rental property insurance options.
If you own a home then you have a homeowner’s policy. As you know, this coverage protects your house and can provide some coverage towards the belongings and items within. If you plan on renting your house, you may be assuming the insurance is still valid. However, once you vacate the home and someone else moves in, your policy is no longer in effect. If you really want to supplement your income by renting the property to another person or family, then you need to have new insurance.
Rental Property Insurance
In order to protect the house you need new coverage. As a replacement for your now-void homeowner’s, consider picking up Dwelling Fire Coverage. As the name implies, this protects the building should a fire occur while another family is renting it. The policy may also include compensation for lost income for up to a year should the house become destroyed or severely damaged. In addition, Dwelling Fire Coverage can in some cases provide coverage in the event that a person becomes damaged on your property.
If you are renting a house and someone becomes injured on the property you may find yourself facing a lawsuit. If you are forced to settle or pay the injured party, then you may exceed the liability coverage within your Dwelling Fire policy. We recommend carrying umbrella insurance to protect against this. Umbrella insurance provides additional liability coverage should you exceed what is in your current policy.