When you decide to earn extra money from renting out some space on your property, you’re becoming a landlord in Matthews, NC. As a result, you’ll face some risks associated with a rental property, such as loss of income. While you may have a homeowner’s policy to cover your personal belongings and other valuable assets, it may not serve your needs as a landlord.
Home insurance can adequately provide coverage for your whole property and your private assets. But when it comes to landlord insurance to offer protection from other risks, it’d be advisable to have a separate cover. It’s because you’re now running a business, and as such, the risks you’ll cover cannot be the same as those of a homeowner’s policy. It’s essential to treat them differently.
A rental dwelling policy will kick in if, say, a tenant or a guest on your property is injured. For this reason, standard home insurance may not be useful in this situation.
Another issue to consider is the length of time you’ll rent out part of your property. The longer it’ll be on rental, the more important you should have a landlord policy. Although you may have rental dwelling insurance, your tenant’s private possessions may not be covered. In this case, it’d be a good idea for them to have a renter’s insurance though it may not be state mandatory.
The last consideration is that a landlord policy would be suitable if you rent out a permanent property. You may not use the standard homeowner’s policy. But if you’re unsure whether your space can be considered as a rental, JC Demo Insurance Group can help you in this regard.
Still, have more questions in connection with homeowner’s insurance? Contact JC Demo Insurance Group in Matthews, NC.