With college back in session and so many fans of the local football teams anticipating the upcoming games, homeowners insurance agencies see many homeowners looking to rent their homes out on game-day weekends.
Since weekend home rentals are in demand in some towns, it can be a great way to make a little extra income, at least as long as you have the right homeowners insurance and know the risks involved.
All too often, homeowners insurance agents see owners ending up with rejected claims because they did not have appropriate insurance coverage for the situation.
Does Homeowners Insurance Cover Weekend Rentals?
No, a standard homeowners insurance policy does not cover a home if it is rented to a third party, even for just a few days.
Homeowners policies are written according to more than just the attributes of the home itself but also on:
- How the home is used and maintained.
- Who lives in and visits it.
- Other more personal details.
Homeowners insurance agencies advise their clients that generally speaking, the owner of the home is going to take better care of it and be more careful with it than someone who is simply renting it for a few days.
Just like hotels, the “don’t worry, it’s insured” frame of mind can result in damage that would not have occurred with just the owner living in the home.
Additionally, the liability risk taken on when letting someone else rent a home is significant, with homeowners and their agencies in precarious and frequently liable positions should an accident happen.
For these and many other reasons, homeowners insurance agents must treat homes that get rented out even just for a few game-day weekends as rental properties.
How Can Rental Homes Be Insured?
Even if you do not plan on renting out your home more than a few weekends a year, it is critical to have it protected by the right homeowners insurance coverage during those times when it is rented.
Talk to a homeowners insurance agent about any of the following products which may suffice depending on the agency, the home, and the circumstances:
- Short-Term Rental Insurance - A rental policy purchased in addition to the standard policy to cover the specific risks that can come with renting a property.
- Umbrella Insurance - Additional liability and property coverage to protect yourself if renting to others and there is a liability issue that could affect you personally.
- Specialty Insurance Coverage - A specialty policy offered by your homeowners insurance agency designed specifically to provide property and liability insurance under occasional rental situations.
- Landlord Insurance - If the property gets rented out frequently, regular landlord rental insurance could be another safe option.
Talk to Your Homeowners Insurance Agent First
As easy as it may be to let someone rent your home for a few game-day weekends over the football season, homeowners insurance agents across the board warn homeowners to first talk with them about purchasing adequate insurance coverage.
A regular homeowners insurance policy will not cover your home for losses and liability exposures if the home is being rented to someone else.
Your homeowners insurance agency has a product they can recommend to provide the coverage needed to protect you and your home while renting it out on game-day weekends to earn a little extra income!
