Whenever you enter into a lease agreement on a rental property, there is a list of conditions you must fulfill and avoid any violations of that agreement. So if you own a home and are considering renting it out even for a short while, you may have some questions relating to renters insurance. One of those questions is how you should go about it in the first place.
Check Your Insurance
The first step is to check on your own homeowners’ insurance. You will need several different types of coverage that you might not have thought of before now. That’s because you likely didn’t even need them yet. You will need to get physical damage coverage in case of fires or lightning strikes; personal property protection for all of your possessions that you leave for the tenant to use; and liability coverage as well. Why is liability coverage necessary? This is to help protect everyone involved in case the tenant should be hurt or injured while staying on your property.
Consider Fair Rental Value
Beyond those three types of coverage, you will also want to think about getting coverage for fair rental value. First-time renters who are renting out their homes instead of renting a place to live may not recognize this term. This means that you are covered in case your home is too damaged to live in before your tenant can move in. Usually, this coverage lasts up to a full year, but in some case, you may need up to two years to make up for the income loss.
Check Your Tenant’s Insurance
Next, you will want to double check your tenant’s insurance as well. After you have determined what levels of coverage they have, you should initiate a conversation about purchasing renter’s insurance. Both of you can be protected if anything should happen – doing this also helps extend liability insurance if you are named as someone who is an additional insured beneficiary; given the recent popularity of short-term renting, renters getting the proper paperwork and coverages in place helps everyone feel safer. With some peace of mind, the relationship can be a fruitful one that can last for years.
Get in Touch with Wachter Insurance
Whether you need renters insurance, business insurance, homeowners’ insurance or auto insurance, our team at Wachter Insurance Agency, Inc. is here to help. We give our clients competitive rates, professional customer service, and a vast 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, call us at (301) 371-6335 or visit us online. For more blogs like these, follow us on Facebook, Google+, Twitter, and Pinterest.