When you are renting out your home, you need a different type of home insurance policy. It is absolutely necessary that you insure your home before you rent it out.
You need a different type of insurance cover because you would not be insuring the house and the contents unless you rent out furnished accommodation. You need to protect your self against loss of income. Although your tenants may buy a renter’s policy, it does not protect you as the owner of the house. Take into consideration liability issues.
There are companies who specialize in commercial insurance. They have different policies designed specially for rental home owners. Like I earlier mentioned there are variations in rental property policies.
The following are policies that are available:-
1. Coverage for property left on the premises.
2. Coverage for loss of use. This is the policy that covers you if you loss rental income on insured property as a result of a disaster that you have a coverage for.
3. General coverage of the physical structure of the house based on either named disaster or open disaster.
4. Coverage for other property located on the premises. Like the garage, shed and others. This is usually limited to only 10% of the overall coverage of the house,
5. Liability coverage for injury or damage incurred on insured property.
6. Medical expense coverage. This covers medical bills for any injuries that occur on insured property.
Because of the various policies that there are available, you have to take out time to shop extensively to get the company that would provide you with the adequate coverage