Does homeowners insurance cover rental property?

Homesharing Insurance

We need to examine your policy carefully to see if this activity is covered.  Most "regular" homeowners may not. So if there is a claim related to a guest or tenant’s action, you may have no coverage.

Having said this, some companies will extend coverage for homesharing. This must be added as an "endorsement" – a fancy insurance term for the language in the legal policy binding the insurance company to pay when something happens.  Of our companies, Travelers or Foremost provide the most comprehensive coverage. And Specialty coverage thru Lexington- please see below.

Additionally, these endorsements may also cover "Loss of Use" – which replaces your income from the rental if something happens to your property – like a fire – which would prevent your tenant from scheduling your property for home-sharing.

When adding this coverage, your agent will need to get additional information.  What part of your home is being rented?  How often do you rent out this space? What is the estimated revenue?

With all this information, we can craft your home-share coverage to meet your needs and budget.  
​

1. Consider obtaining additional coverage. A standard homeowners insurance policy typically doesn’t cover damage that occurs when the space is being used as a rental.

2. Ensure your space qualifies as a rental. If you’re unsure about whether your situation is fully considered “renting,” contact your insurance provider. Different insurance companies have different rules for what qualifies as a rental, such as whether the person living there is a family member, whether the space has a separate entrance and how the space is attached to the main structure. Making sure you’re aligned to your insurance provider’s definition is key to choosing the right coverages.

3. Stay protected with Dwelling Fire insurance. If you are renting out your property for any length of time, you will need landlord insurance. Most landlord polices come standard with liability insurance, property damage and loss of income coverage, which reimburses you for rent lost as a result of the unit becoming uninhabitable. You can also take out additional coverages, such as flood insurance, to further protect your property.

4. Encourage tenants to get renters insurance. Renters insurance is the only way your tenants can protect their belongings, because your landlord’s insurance won’t cover their personal property. It can also protect tenants from having to pay out of pocket for other common incidents like water backup damage and certain natural disasters – which helps you protect your investment.

5. Cover your personal belongings. If you rent out a property that you own full time, you may not need a standard homeowners insurance policy. However, if you’ve furnished the house or store any of your personal belongings there, you will still want home insurance to protect these contents.

We are proud to be a partner of Asheville Homesharing Network.

That’s a lot to consider! Please contact me and I will be happy to evaluate your needs to provide the most effective coverage.

JESSICA CODY
General Manager & Agent
​Trout Insurance Services

Cell: 828.713.8640​
Office: 828.450.1348
​
jessica@troutinsurance.com

---