It can be a great investment to rent out unused parts of your house, but it can also involve a lot of work to make sure that you handle everything properly. Whether you are renting out part of your house or looking for a roommate for your apartment, there are several things you should consider, especially in regards to insurance. Read on to address some key insurance questions when renting out your home.
Your Insurance Policy
First, you should make sure that you know the ins and out of your own homeowners’ insurance policy. When you are preparing to rent out your house, you will more than likely need to add coverage in certain areas. For example, you might need coverage for fire damage, as well as coverage for your personal property for the items you leave for the tenant to use. And liability coverage is especially important. If your tenant is injured while living in your property, they could have grounds to sue. But liability coverage will protect you by taking care of those costs.
Fair Rental Value
The next thing you will need to consider is coverage for fair rental value.
The term fair rental value may be unfamiliar to a first-time renter, but it basically means having coverage for income loss if your house turns out to be too damaged to be suitably rented out before your renter can move in. Fair rental value coverage is very important, especially if you have never rented out before, and it can last for up to a year.
Your Tenant’s Insurance
Once your insurance coverage is squared away, don’t forget to also check your future tenant’s insurance coverage. It’s best practice to have a conversation with them about what their current policy covers as well as getting renter’s insurance. Discussing insurance with your tenant will also reduce your liability if something goes wrong. Insurance is key to the success of short-term renting, and it helps you and your tenants have peace of mind and feel that both sides are fairly treated.
Get in Touch with Wachter Insurance
Whether you need homeowners’ insurance or auto insurance, our team at Wachter Insurance Agency, Inc. is here to help. We offer all of our clients competitive rates, professional customer service, and a huge range of policies to choose from for your needs. We have been serving Maryland, West Virginia, Virginia, Pennsylvania, and the District of Columbia since 1969, and we would love to help keep your home and family safe every day of the year. For more information, give us a call at (301) 371-6335 or visit us online. For more blogs like these, follow us on Facebook, Twitter, and Pinterest.