For many people, renting a home is simply more feasible then buying one. In other cases, people who already own a home or multiple homes see renting as a great way to supplement their income. Either way, whether you are living in the house or renting it out, you need insurance. What do you know about renters insurance?
Do You Need a Policy If You’re Renting?
Unfortunately, some people assume that because you don’t own the home you don’t know need an insurance policy. However, a renters policy can protect your belongings should they become lost, stolen, or damaged. While your landlord may have an insurance policy, this only protects his/her buildings, not the contents inside that belong to you. Without a policy of your own, you run the risk of financial pressure or even ruin in the event your home floods, is robbed, or otherwise damaged/destroyed.
What If You Own the Home?
What if you are renting the home, not staying in it? First, be aware that once you vacate your home and allow another person or family to live inside, your homeowners policy is void. You need rental property insurance to protect your investment, should the house become damaged by external events or as a result of the tenant. If you don’t take steps to protect your investment, then your supplemental income can vanish when disaster strikes.
What is Dwelling Fire Coverage?
Dwelling Fire Coverage provides an extra layer of protection for the landlord renting the property. If you are renting a home to others, the policy offers coverage for fire damage and injuries in the home. The policy also provides compensation should the home become so damaged people can’t live in it any longer. Some policies provide up to a year of lost income compensation.