When economic times get tough, a way to relieve your pocket is renting a portion or all of your property for a short period of time.
This is most popular during the holidays, or when there are large events that make your city is full of tourists.
However, before handing over the keys to the new tenant, taking into account that might need a different from your current home insurance coverage.
To ensure that your policy will protect your property and your finances if you rent your property short term:
Contact your insurance agent. With their help, you can determine if your current coverage is sufficient in case someone is injured or if your home is damaged during the stay of the new tenant.
Find the terms and conditions of your current policy. Some insurance allow you to rent your property for a short time due to any situation or special event in your area, as long as you notify the insurer in advance. Even if this option is available, it is probably necessary to extend your coverage. This extension is known as an endorsement of insurance
Different insurance for every situation
Even if it is short term, some companies may consider temporary rental of your home as a business operation, especially if you do get used often.
Because the housing standard policy excludes losses from business activities in the home, in this case you will need to purchase insurance similar to that hire the hotels, inns and pension businesses.
If however, you intend to rent your home long-term (more than 6 months, for example), youâ€™ll probably need landlord insurance.
This policy is usually more expensive than a normal home insurance as this could include additional protection. Even some cover lost income if a result of the damage; youâ€™re unable to rent your home for a while.
With so many options, it is best to talk to your insurance agent about your plans. This way, you can enjoy the extra money by charging rent knowing that you are protected against the unexpected. (By usa news).