Renting Out A Room In Your Home? Your Insurance Needs Will ChangeArticle Posted by Expert Author: Carly Jorge on 04/08/2013
So you've decided that renting out an empty room in your home can help you make a little extra monthly cash. And why not? An unused room could be money in the bank. But if you're not properly covered by your insurance plan, that extra money could end up going toward your legal costs.
Renting even a room means that you will become a landlord. And doing so will mean that you are now responsible for the well-being of the person who is renting from you. This will mean getting landlords insurance to cover any potential liability, such as medical costs if your renter injures themselves while on your property. Landlord insurance will also help to cover you in the event that your tenant decides to take any legal action against you.
Landlords insurance is there to cover you, and as a landlord, you are only responsible for the safety of the dwelling you are renting out along with the walkways, driveways and other access points around your home. Your tenant will still have to purchase renters insurance in order to safeguard their own belongings.
This specific subset of homeowners insurance is something you should probably speak specifically to an agent to understand the ramifications of renting out a room, and making sure that you and your tenants are properly covered in the event of any incidences.
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