Renting Homes to Tenants Raises Key Insurance Issues

Many landlords may make the perilous mistake of not updating their insurance policies when they begin renting out their units or even just rooms within their home. While some insurance policies will cover someone who is only temporarily renting out their home, such as for a vacation rental situation, many insurance policies will not cover anything that happens to a home if the landlord does not have a specific landlord insurance policy. This is because rental units are usually riskier to insure than owner occupied units. Landlord insurance policies are usually more expensive than standard insurance policies but they are necessary.

In addition to this, landlord insurance policies can be useful because they can insure the landlord against loss of rental income while a unit is being repaired. Otherwise a landlord may find themselves losing revenue while an apartment or home cannot be rented out due to circumstances that are beyond their control. Additional insurance policies can also be added to further protect against the potential actions of tenants, and this can be discussed with the landlord’s insurance agent.

For more information about what to do when renting out rooms or property to tenants contact Cary Amo, your Lafayette agent.

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