If you have purchased a home to rent out, or decided to rent out a home you can’t sell, you may be wondering whether your regular homeowners insurance will be affected by allowing other people to live in your home. The length of time your home will be rented affects the type of policy you need. Here is some information you will want to know if you are in this situation.
If you are renting your home out for only a temporary amount of time, and this is not something you plan on doing again in the near future, your homeowner’s insurance policy may not be affected. However, you will want to contact your insurer just to be positive. They may require you to sign an endorsement stating who will be living there, how long they will be there and the circumstances surrounding the temporary rental.
Short Term or Vacation Rental
If you plan on renting your home out as a short term or vacation rental, your home is no longer deemed to be a home, but rather a business. As such, a homeowners insurance policy will not help you. You will need to obtain a business policy. There are various types of policies, including hotel, bed and breakfast and vacation rental policies.
Long Term Rental
If you are looking to rent your home out as a long term rental, typically six months or longer, you will need to obtain a landlord or rental dwelling policy. These policies may be add-on policies to your homeowner’s policy or may be sold separately, depending on the insurance company.
If you are looking to rent your home in the greater Clovis, NM area out contact General Insurance Agency. We can help you with all of your insurance needs, including rental and home insurance policies. Contact us today for a free quote.