I am Renting My Property: Do I Need Home Insurance?

I am renting my property so do I need homeowners insurance or landlord insurance in order to protect my investment in case bad things happen?

By Bernadine Racoma

Have you decided that you want to become a landlord? Renting out your property can be a very profitable move, especially if you buy the right property in the right area. This is particularly true if you have a house or apartment lying empty. You can make good money depending on how big and where the property is.

But you have to be aware of your responsibilities as a landlord and then some. You have to ensure that you look after your renters and protect them against hazards such as loud music, assistance animals and noisy children. In addition, you also need to make sure that you protect yourself. Unfortunately, bad situations can happen when you are renting out your property to others. Instead of letting this stop you from becoming a landlord, you just need to know how to protect your investment. One way to do this is insurance

Homeowners Insurance or Landlord Insurance?

 If you are new to renting out properties, you may wonder what type of insurance is going to be best for your needs. Should this be homeowners insurance or landlord insurance? Indeed, there is a time and place for both of these options. Let’s take a look at the differences between them.

Homeowners Insurance

Most homeowners insurance policies will require you to live in the home. But this does not mean that you cannot make it work as a landlord. In fact, if you are planning on still living in your property and simply renting out one of the rooms, this could be a good option for you. Just make sure that this is going to be suitable for your insurance policy.

Your homeowners insurance is going to cover everything you want if you are still living in the house. For example, it is going to protect you against damage to your property, whether this is caused by a fire or extreme weather. You can also make sure that your insurance policy covers your belongings inside the home. If anything is damaged, you are going to receive assistance when it comes to repairing or replacing them. Make sure that you compare home insurance quote costs before you decide the one for you. You want to ensure that you are getting the best deal and one that is suitable for your needs.

It is important to realize that homeowners insurance can cover you against liability in your home. For example, if someone is injured on your property. This can be good if you have someone renting with you. But if you are not going to be present in the house, you may want to take a look at landlord insurance and see if this suits your needs.

Landlord Insurance

You may have guessed by the name that landlord insurance is going to be beneficial for you. Indeed, it can be a better option if this is something you want to do long term. For example, this type of insurance is going to help you if damage is caused to the building. Therefore, if there were a fire or adverse weather conditions that caused damage to your property, this type of insurance is going to help you pay for repairs.

One thing to know about landlord insurance is that it does not always offer the same coverage as homeowners insurance. For example, if you leave behind contents that belong to you in your property, it is likely they will not be covered. You can insure your contents but they might not be automatically covered. You will need to examine your policy very carefully before you choose landlord insurance.

Before You Choose Insurance

It is always important to shop around before jumping at an insurance policy so you can make the right decision. Before you choose between homeowners insurance and landlord insurance, make sure that you think about your circumstances. For example, consider whether you are going to be present in the home or you are going to leave your renters in charge of the whole property. The last thing you want is to choose a policy that does not cover you for what you need. Therefore, sit down and make a list of factors before choosing an insurance policy. This is going to ensure that you get everything you need and for a price that is going to suit your budget.

About the author:

I am renting my property so do I need homeowners insurance or landlord insurance in order to protect my investment in case bad things happen?

Bernadine Racoma is the Content Manager of eTranslation Services. Her long experience in an international development institution and extensive travels have provided her a wealth of knowledge and insights into cultural diversity. She writes to inform, engage, and share the idea of the Internet being a useful platform for communicating, knowledge sharing, educating, and entertaining.  You can find Bernadine Racoma at Twitter.

I am renting my property so do I need homeowners insurance or landlord insurance in order to protect my investment in case bad things happen?