4 Things To Know About Your Homeowner's Policy With Roommates

Are planning to rent out a bedroom within your house, either to somebody as a long-term rental through a temporary rental service? While it could be a wonderful way to make some extra money, you must be aware of how it will work with your homeowner's insurance. Here are four things you should know:

Know How Insurance Applies When You're Living In The Home

You must decide if you will be renting a room while you are also occupying the home since it has a big impact on your insurance policy. In general, you can expect to have full coverage if renters are staying at your home while you are also living in it. You should not need to make adjustments to your home insurance coverage, but just to be safe, contact your insurance company to verify it is okay. It may be requested that you create a lease for the person staying at your home to ensure you have proper coverage for people that are not family members.

Know About Renter Personal Property Coverage

You should have no issues with your own personal property being covered while a renter is staying with you. However, the same may not apply to personal property owned by the renter. Their personal property may actually fall under their own homeowner's or renters insurance policy, not your own. If they do not have a policy, they may be out of luck if their property becomes stolen or damaged.

Know Your Personal Liability

Friends or family members of your renter may also visit your home from time to time. Be aware that you are liable if any visitor of your guest becomes injured on your property. While your homeowner's insurance should have liability coverage, you may not want to use it. If so, be sure that your renter has liability coverage through a renters policy of their own.

Know How Insurance Applies When You're Not Living In The Home

Your insurance policy may not apply in the same way when you're renting a room when you are not currently living in it. This often occurs through temporary rental services like Airbnb. Check with your home insurance agent to be certain, but you may need to get a different kind of insurance, like a landlord insurance policy, that covers your home when you're not occupying it.

By knowing these four things, you'll be sure to have proper insurance coverage when renting out a room of your home. Contact a company like Accredited Insurance Group Inc for more information and assistance.