Home Insurance Articles
How Renting A Room Affects Your Home Insurance Quotes
2010-09-11
If you are planning on renting a room in your house it may affect your home insurance quotes. If you already have home insurance, it may be a good idea to check with the insurance company if they have any problems with you renting a room in your house.
In most cases, as long as you are staying in the house, insurance companies will not have an issue with you renting out a room in your house. In fact, some insurance companies will even pay you if something happens to the space you have rented out. For example, if the room you have rented out burns down, the insurance company would provide rental insurance coverage, as long as it is stated in the policy; however, this would not cover the tenant's belongings. It is highly recommended the tenant purchases renters insurance. This will provide coverage for the tenant's personal property and personal liability in case he or she gets sued the coverage will take care of that, too.
One other option you could consider when renting a room in your house is a landlords insurance, which will cover liability issues. This is useful in case of injury to your tenant. For example, if your tenant has a fall in your house and suffers broken bones, the liability insurance will take care of the medical costs and even lawsuits, if any.
Your home insurance premium will generally not go up if you rent a room in your house. In fact, some insurance companies even allow up to two roommates or boarders without any change to the insurance premium. Generally, if there are more than two roommates, the insurance premium would go up. If you have planning to rent rooms to more than two people, it is a good idea to speak to your insurance company before you do so.
It is a good idea to get a lease or an agreement drawn up between you and the tenant before you rent out a room. The lease or agreement is proof that a room was rented out in your house, and in case of issues such as loss of rental income your insurance company will take care of it.
While renting a room can be an extra source of income, it is important you check how home insurance quotes are affected by this. While it may not make much difference as long as you are staying in the house and the roommates are limited to two, some insurance companies may have their own rules. So get all the relevant details before you decide to rent out a room.