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At E.S.T.I.R. Inc. serving the greater Newark, NJ area, we are often asked if a home insurance policy needs to change or is affected if a person rents their home out. If you are considering renting your home out, here is some information you need to know about your home insurance.
Your Home Insurance Policy Typically Covers the Owner
Your home insurance policy typically states that it covers the owner of the home and any family that they have living with them. If you rent out your home, or even just a room in your home, those individuals are not covered against property damage resulting from fire, theft, water damage and other damage that you, the owner may be covered against. In this case, the renter will want to purchase their own renters insurance to fully protect themselves in this situation.
You Likely Need a Different Insurance Policy
If you are renting your entire home out, you will likely want to purchase only home insurance or landlord insurance. These types of policies only insure the home, not any belongings inside. This type of policy is often cheaper than homeowner’s insurance because you are not paying to insure your belongings inside. Landlord insurance also may protect you against lawsuits brought against you by a renter who injures themselves or has any guests injured on your property while they are renting out the home.
If you are planning on renting your home out, changes typically need to be made to your home insurance policy. If this is the position you are in, let E.S.T.I.R. Inc. serving the greater Newark, NJ area, help you. Call us today and let us help you find the right insurance policy for your rental home.