Thinking of Renting out your Home?


If you are thinking of renting out your home, whether it be on a short-term or long-term basis, please remember to give us a call to discuss your insurance policy coverage.


It is important that your Insurance Company always be notified in the event of any material change in risk.  If the insurer is NOT notified and a loss occurs, they have the right to VOID the policy or to deny the claim.


For example, if your property is insured as a Homeowner’s and then you decide to rent it out, this changes the type of risk.  The Insurance Company may perceive the possibility of a loss to be higher, as tenants are now residing in the property instead of the owner.  In addition to insuring the building under a Rented Dwelling insurance policy, there are additional coverages that we as your Broker would recommend for a rental property.  As a landlord, you can purchase coverage for your appliances (washer, dryer, fridge, stove) and any furniture in the home if you are renting the property furnished.  As well, you can purchase coverage for the amount of annual rental income that you collect from your tenant.


Most Rented Dwelling insurance policies exclude damage caused by the tenants, so it is highly recommended that you screen your tenants carefully.  The tenant’s personal property is not covered under a Rented Dwelling insurance policy, and therefore we also recommended that your tenants carry their own Tenant’s insurance policy for whatever limit of contents and liability coverage they require.  A landlord and tenant are not mutually exclusive when it comes to liability.  Liability depends on who, if anyone, is found negligent in the event of a loss.  The rental agreement may define who is liable in the event of certain situations.


Most of the Insurance Companies that our Brokerage represents offer coverage for rented dwellings.  Some of our markets will also insure standalone rentals (meaning they do not need to insure your primary residence).  In the event you are looking to rent your property out on a short-term basis (think VRBO or AirBNB), we also have wholesale Insurance Companies that specialize in providing coverage for these types of risk.


This same principle applies to other assets you may have insured.  If you are considering renting out your vacation trailer, boat, motorcycle,… (you get the idea!) please remember to contact us first so that we can ensure that you and your assets are properly protected!


Please do not hesitate to contact our Office if you have any further questions or concerns.


Thank you,

The Costen & Associates Team