Whether renting out a room in your home to make some extra cash or leasing out your entire property, it’s essential to have the right insurance in place. If something happens to your property while it’s being rented out, you could be liable. That’s why it’s crucial to have home insurance that covers rental properties. Let’s discuss whether or not you need rental property insurance and what it covers.
Why You Need Home Insurance for Renting
If you’re renting out a room in your home, your homeowner’s insurance policy will likely cover any damages that occur to the property. However, most homeowners insurance policies will not provide coverage if you’re leasing out an entire property. That’s because when you’re renting out a property, it’s considered a business venture. As such, you’ll need to purchase a separate policy that specifically covers rental properties.
What Rental Property Insurance Covers
Rental property insurance is designed to protect you from financial losses that could occur as a result of damages to your property or injuries that occur on the property. It will also cover you if your tenants cause damage to the property. Most rental property insurance policies will cover the following:
- Property damage caused by tenants or their guests
- Injuries that occur on the property
- Loss of income if the property becomes uninhabitable due to damages
- Legal expenses if a tenant sues you
How Much Does Rental Property Insurance Cost?
The cost of rental property insurance will vary depending on several factors, including the value of your property, the location of your property, and the amount of coverage you need. The type of tenants you have can also impact the cost of your insurance. For example, if you’re renting to college students, you may pay more for insurance than renting to families. To get an accurate estimate of how much it will cost to insure your rental property, speak to Versatile Insurance Planners in San Antonio, TX.
If you’re renting out your home, it’s essential to have the right insurance in place. Rental property insurance will protect you from financial losses resulting from damages to your property or injuries that occur on the property. To get an accurate estimate of how much it will cost to insure your rental property, speak to Versatile Insurance Planners in San Antonio, TX today.