Whether you're looking to rent a room in your house, or a second home, condo or apartment, if you are considering renting, take the following considerations to heart before doing so:
Renting To Do’s
- Draw up a rental agreement that defines the terms of the rental, including restrictions, liabilities and occupancy guidelines.
- Ask for references from potential renters, especially those that will stay for a while. Checking the references of potential renters is vital when determining if you will open your home to strangers.
- Request a security deposit to be refunded if there is no damage to your home.
- Contact your Marshall & Sterling representative about your plan to rent out your home and ask about how this may affect your current coverage.
- If you are renting for a long period of time, consider hiring a “property manager” to look out for your house while you are away.
Whether your property is an apartment unit or a family home, if you are renting the property, you will have little control over the physical damage that can occur. To mitigate your risks, tenant-occupied dwelling insurance will cover the costs incurred by damage, including fire, storms, burglary and vandalism. It does not cover your tenant’s personal property.
Renting your property furnished or unfurnished also has insurance coverage implications. If you are renting your property furnished, let us know. We can advise you on the best coverage options and whether you should consider requiring longer-term tenants to carry additional renters insurance.
Protecting Your Personal Property
- Set aside a locked place in your home to store personal items such as clothing and valuables.
- Take valuable items to a locked storage facility, a family member’s home or a bank vault.
- Change alarm codes after you are done renting.
- Provide keys to only one door of your residence so that you have to change only one lock after the renters leave.
- Photograph and videotape all areas of your home before the rental takes place in case damage occurs while you are away.
- Tell your neighbors that you are renting and ask that they watch over your home.
- Have your mail forwarded or held until you return.
- Provide your contact information for both the renters and your neighbors in case of an emergency.
- Provide the renters with a list of service providers, such as plumbers and electricians, in case of a water leak or furnace failure.
As with all homeowners insurance, it is important to be sure that there is enough coverage to protect all of your property values and assets when purchasing coverage. If you are looking to insure a vacation or second home, your insurance needs are unique. We can help! Contact Marshall & Sterling today to learn more about the risks of renting your home.