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August 4, 2023
Affiliated Agency of Ocala

Why Do I Need to Switch My Insurance When Renting Out My Home?

Your home represents a significant investment that must be financially protected. Even when you are not currently occupying your home, there may be extensive risks and exposures to consider, especially if you choose to rent it out to another party. Fortunately, by working with the qualified insurance professionals at Affiliated Agency of Ocala, you and your home can maintain robust financial security regardless of occupants.

How to Keep Your Home Insured While Being Rented Out

While renting out a home can provide a convenient revenue stream, it may also create personal risks and exposures. Even if you already have homeowners insurance, you typically need to make changes to your coverage if you are not the party currently occupying the premises. This is because homeowners insurance policies typically apply only to homes occupied by the policyholder. So you should explore rental property insurance options when renting your home to another party.

Understanding Rental Property Insurance

Also known as landlord insurance, rental property insurance casts a financial safety net across many common risks and exposures related to renting out your home. The details of these policies may vary but are generally focused on helping you recoup financial losses involving your rental property and tenants. In most cases, rental property insurance can provide coverage for the following:

  • Structures—This part of your policy may help pay for damage sustained by the structural elements of your home and any additional structures on the property, such as detached garages, sheds and gazebos.
  • Possessions—Your insurance may provide financial protection for items you leave on the premises, but typically will not cover your tenants’ belongings.
  • Liability—If you are at fault for an incident where your tenants suffer bodily injuries or property damage, this part of your policy may help compensate them for their losses.
  • Loss of use—This coverage may help you recoup lost or reduced income if your home is made temporarily uninhabitable, therefore making you unable to collect rent.

Additional Rental Home Insurance Options

In some cases, it may be possible for you to maintain insurance on your home without needing a separate rental property insurance policy. For example, if you plan to rent out your residence only for limited periods of time, your existing homeowners insurance policy may continue to provide coverage, although you typically must notify your insurance company of your intent to rent. You may also be able to purchase an endorsement for your homeowners coverage rather than acquiring a separate rental property policy.

Get the Right Coverage

At Affiliated Agency of Ocala, our staff is dedicated to serving the coverage needs of homeowners, families and businesses. Our agents will draw on over 30 years of knowledge and experience to assess your circumstances, explore available options and compose optimal policies. Call 352-694-7600 or visit our website to get started today.

 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 

Categories: homeowners insurance

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