Renting out your home can be a great way to generate extra income, but it also comes with new responsibilities, especially when it comes to insurance. At Spring Grove Insurance, servicing Spring Grove, IL, we often help homeowners understand how their insurance needs change the moment they hand over the keys to a tenant.
Homeowners vs. Landlord Insurance
If you’re renting out your property, your standard homeowners insurance policy may not be sufficient. That type of coverage is typically designed for owner-occupied homes, not rental situations. Once you start renting out your home, even just one room, you’ll likely need landlord insurance. This type of policy offers protection tailored to rental properties, covering aspects such as property damage, liability, and lost rental income in specific situations.
Protecting Your Investment
Accidents happen—pipes burst, storms hit, and tenants can be unpredictable. Landlord insurance helps cover the cost of repairs or rebuilding if a covered event damages your property. It can also protect you legally if a tenant or guest gets injured on the property and decides to take legal action.
Short-Term Rentals Need Special Attention
If you’re using your property for short-term rentals through platforms like Airbnb, your insurance needs may differ. Some policies exclude short-term rental activity altogether, so it’s essential to work with an agent who understands the specifics.
Before you list your home for rent, make sure your insurance is ready to handle the change. At Spring Grove Insurance, servicing Spring Grove, IL, we’re here to help you navigate the options and ensure your property is protected, whether you’re renting it out full-time or just occasionally. Give us a call, and let’s make sure you’re covered from every angle.
