As a homeowner, you probably already have a homeowners insurance policy to protect your investment. However, basic homeowners policies do not cover all damages, especially those incurred while the home was rented out to someone else. Depending on how long the Houston, TX home is rented for and the situation, there may be some exceptions. Our experienced agents at Heydari Financial Group can advise you on what insurance you need while renting your home.
If renting out your home is only short-term, such as a week or for a few weekends, your homeowners insurance needs may vary. The insurance company takes into consideration the length of time and specific circumstances the home is rented. Some insurance companies allow short-term rental and provide coverage if they have been notified in advance and the same tenant is renting the house. Other companies require short-term tenants to be added as a rider to your existing homeowners policy.
If you plan to have multiple tenants rent your home for short periods, the insurance company considers this a business and will not cover your property. For these home rentals, you need a business insurance policy, such as a hotel or bed and breakfast policy.
A second home is a popular investment strategy, and many rent out their second homes. Renting out a second home as a source of income requires you to carry business insurance, such as landlord or rental dwelling policies. Your insurance agent will discuss risks with you and how long the home will be rented. This information helps determine what types of insurance policies are needed and how much coverage is required.
Your business insurance policy covers the house’s structure and not your tenant’s belongings when renting out your home. However, some landlords require tenants to carry renters insurance to cover their possessions and any damage they may incur on your property.
When renting out your Houston, TX home, call the experts at Heydari Financial Group for help purchasing the best insurance available for your needs.