Renting out your home can be a smart move, but it’s essential to understand how it affects your insurance coverage. At Paragon Independent Insurance Agency, serving the Plano, TX community, we frequently receive questions from homeowners considering becoming landlords. The truth is, your standard homeowners insurance might not be sufficient once you start renting.
What Changes When You Become a Landlord?
When you rent out your property, even for a short period, the risk shifts. A traditional homeowners policy is designed for owner-occupied homes, not properties used for rental purposes. This means that if something goes wrong, such as a fire, water damage, or an injury on the property, your existing coverage may not apply.
Do You Need Landlord Insurance?
In most cases, yes. Once you’re no longer living in the home full-time, you’ll likely need a landlord insurance policy. This type of coverage typically includes protection for the structure itself, liability coverage in the event a tenant or guest is injured, and loss of rental income if the property becomes uninhabitable due to a covered event. It’s a specialized layer of protection designed for rental situations.
Don’t Overlook the Details
Every rental situation is unique. You might be renting out your entire home or just a single room. Some policies may have restrictions based on the rental duration or the number of tenants. That’s why it’s crucial to consult with an experienced agent who can guide you through the right coverage options.
If you’re planning to rent out your property, don’t leave your insurance to chance. Reach out to Paragon Independent Insurance Agency in Plano, TX for expert advice and customized coverage tailored to your specific needs.
Comparing Quotes - Made Simple