More and more people are using services like VRBO and Airbnb to find vacation rentals. As a result, many people are using their homes to develop rental income. A standard homeowner’s policy may not cover losses incurred while your home is rented out. You may require a more specialized insurance policy.
Key Homeowner’s Insurance Concerns With Rental Property
- Homeowner’s insurance will not cover rental property.
- You need insurance when you do not occupy the same residence as your tenant. You will also need special insurance if you are renting out your own home temporarily, or sharing accommodations such as your basement level, with a renter.
- Consider liability coverage in the event your renter is injured on your premises.
- Consult a local attorney who is knowledgeable in home rental laws in your area. Some cities have new laws that make it easier (or harder) to legally rent out part of your home if you’re not a licensed hotel or B&B.
- VRBO, Airbnb and other rental sites may require proof of insurance.