In today’s economy, many individuals are renting out their homes. It may be due to the fact that they need to move out of the area for a job and are unable to sell their current home, or they may need to downsize into a smaller home with lower monthly expenses (or move in with family, perhaps), or they may own a second home and want to supplement their income by renting that home out from time to time. Regardless of the situation, individuals transitioning from owner-occupant to landlord need to adjust their insurance policies to provide coverage should it ever be necessary. The Equifax Finance blog explains it all in the recent article, “What Insurance Do I Need If I’m Renting Out My Home?”
If you are renting your Atlanta home, your existing homeowners insurance will not be appropriate. If you file a liability claim, it will likely be denied and your property coverage claims will be severely limited (even if it’s just a short-term rental arrangement).
If you rent your home year-round, you need to choose a rental property policy that provides adequate coverage for your home, loss of rent and liability as an owner of Atlanta real estate. If your home will be rented furnished, you’ll also need to cover the contents of your home. You should know that while you can protect yourself from floods and fires with insurance, you likely won’t be able to get insurance against things like theft and vandalism, as insurance companies simply do not provide such coverage for rental properties.
If your home will only be rented out for a few weeks, you still need to discuss it with your insurance company. Some companies will completely deny any claims that come up when your home is being rented.
An umbrella policy may be your best option for providing the most coverage; but contact your insurance company to find out what will work best for your situation, and the article recommends doing so before you actually rent out your home.
The cost of insuring your rental home will vary of course based on your home’s location, type and amount of adequate coverage needed.
Read the full article on the Equifax Finance blog and while there, learn more about insurance and other personal finance topics from credit to identity theft protection to money management.