Insurance Considerations When You Rent out Your Home

by Isaac Benmergui, Esq on July 12, 2017

rent out your homeWhen you purchase a property to use as a rental, the insurance requirements for that property are a little different than typical homeowner’s insurance. This is even true if you’re just renting out one room, a portion of the home, or another structure on your property like a guesthouse, on a short-term rental site like AirBnB.

If you notify your insurance company that you are using part of your home as a short-term rental, you may be able to use your existing policy, or they may require a rider on your current policy. If you plan to use the entire property in this way, it constitutes a business, and you’ll need a separate business policy. The business policy is the same insurance you would need for a bed and breakfast.

For long-term rentals, you need to purchase a landlord policy. This kind of policy provides protection for the structure itself and any personal property you leave behind, like appliances or home care equipment. Landlord policies also provide coverage for loss of rental income during repairs or rebuilding in the event of damage due to a covered loss.

Renters need to know that a landlord policy doesn’t cover any personal property belonging to the renters. Renter’s insurance is a separate policy purchased by the tenant, and that covers just about everything you own, except fine art or jewelry. Those items can be covered by individual policies purchased separately from the general renters’ insurance policy.

Call Miami Real Estate Lawyer Isaac Benmergui at 305.397.8547 and set up a no charge, no obligation consultation to discuss your case. We have over a decade of experience handling Real Estate and Civil Litigation cases throughout Miami and South Florida, and will use our expertise to help your case to the best of our abilities.

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