If you have decided to rent out your home you must keep in mind your insurance policy. Not all homeowner insurance policies will cover renting out your home. You may be required by your insurance carrier to get additional coverage for landlords. Landlord insurance protects your property and protects you from personal and legal liability.
We would be happy to recommend a couple insurance providers to you, if you need more information.
Things you may want to consider:
You should add Backyard Realty Group as a certificate holder on the insurance to protect us managing your property.
You should call at least 2 (we would recommend 3) different insurance providers to ensure that you get the best deal for the best policy that will work for you.
You should look into a “Loss of Rent Coverage” which covers the rent lost if your property was severely damaged. For example: if your rental property burnt down and your tenants had to find another place to live, you would not be receiving rent and you would need to fix the house. Certain landlord insurance policies will continue paying the rent amount until you are able to put it back up for rent.
Having basic homeowners insurance does not typically cover the home once you rent it out and start making an income off of it. This is why having landlord insurance is so important.
Be sure to ask questions when you speak to insurance agencies about your landlord insurance. Make sure you know exactly what it covers and what it does not cover.
Be sure to find out what happens when a property is vacant for over 30 days. Will you lose your coverage or do you need to pay more?