What Kind of Insurance Do I Need If I Rent Out My Home?
If you own a home, you probably already have homeowners insurance to protect your investment from covered losses. However, a standard homeowners policy may not cover damages that occur when your house is being rented out, depending on the length of the rental term and the situation. Our experienced agent can advise you on what insurance you need if you plan to rent out your home.
Different Insurance Requirements For Different Situations
There may be a variety of circumstances under which you may want to rent your home. The situation may involve either a short-term rental of your primary residence or long-term lease of a second home.
Short-Terms Rentals Of A Primary Residence
If you are planning to rent your primary residence for a very short period, such as a week or several weekends, your insurance needs could vary depending on the specific circumstances:
- Some insurers may allow a short-term rental if you have notified the company in advance. Other insurance companies will require a rider to your existing policy to cover your home under these circumstances.
- However, if you are renting out your primary residence to various guests for short periods on a regular basis, this would constitute a business and would not be covered under a standard homeowners policy. For this type of arrangement, you will need business insurance – either a hotel or bed and breakfast policy.
Long-Term Rentals Of A Second Home
Buying a second home to rent is a popular investment strategy. When individual homeowners marry, they may decide to live in one home and rent out the other as a source of income. This strategy has tax and investment advantages, but it does require you to carry a type of business insurance known as a landlord or rental dwelling policy. Risks are increased when you rent out your property for longer periods, such as six months or a year. These additional risks will be reflected in your premiums, which generally run approximately 25 percent higher than the cost of a standard homeowners policy.
- Landlord business insurance covers physical damage to the structure of your second home caused by covered perils, such as fire, hail, lightning, wind, ice, and snow. It also covers the loss of any personal property you leave on the rental site for tenant use or maintenance, including lawnmowers, snowblowers, and appliances.
- Your landlord policy will also help protect you from liability. If a tenant or guest is injured on the property, this type of business insurance can cover medical expenses and legal fees.
- Most landlord policies also provide coverage for loss of rental income during a period when the property is being rebuilt or repaired after damage from a covered loss. This coverage is usually limited to a specific period of time.
Whether it is your primary residence or a second rental home, residential property is a major investment. Our friendly agent can help ensure you have the insurance coverage you need to protect your home.
What To Know Before Trading In Your Car
There’s nothing better than that new car feeling. But before you drive your new ride off the lot, you often have to decide what to do with the car in your driveway. When it comes to getting rid of a used car, you have two options: selling it yourself or trading it in. (If money […]
How To Keep Your New Car’s Value As Long As Possible
Buying a new car requires a substantial investment today—one you will want to protect. According to the Kelly Blue Book, new car prices are currently averaging:
- $20,000 for a small car
- $25,000 for a midsize car
- $26,000 for a small SUV
- $32,000 for a minivan
- $33,000 for a midsize SUV
- $39,000 for a small luxury car
If you have recently purchased a new vehicle or are planning to do so, the following are some steps you can take to protect your investment.
Park Your Car In The Garage
Many people use their garages for storage and park their vehicles in the driveway or on the street. That could lower the value of your car because it leaves it exposed to the elements. Sun, heat, wind, hail, rain, snow, debris, and falling branches can all cause damage to your vehicle. If you don’t have a garage, consider installing a carport to help protect your investment.
Don’t Smoke In Your Vehicle
Cigarette smoke imparts an unmistakable odor to the interior of a car. It can also dull interior surfaces or cause them to turn yellow. If you smoke in your car or allow someone else to do so, it will reduce your potential resale market significantly and lower the value of your vehicle.
Get Regular Oil Changes
Regular oil changes are the most cost-effective maintenance you can do for your car. They are relatively inexpensive (approximately $30 to $50 per oil change) and can help prevent major engine problems in the future. It is generally agreed that the 3,000-mile oil change rule of the past is outdated. With innovations in technology, the new interval for changing your oil is closer to 5,000 miles or more. Check your manual to find out what is recommended for your new vehicle.
Have Your Car Tuned Up Regularly
Mechanical parts work together and problems can be progressive. A small issue now can become a large, expensive issue later. Regular tune-ups will make your car run better and more quietly and help prevent significant problems that could substantially lower its value.
Clean Up Spills As Soon As Possible
Although most car interiors are designed to resist staining, it is still essential to clean up spills promptly when they occur. Stains can become permanent if they are allowed to sit for too long. This is particularly true for children’s drinks with red food coloring. Coffee and tea can also leave permanent stains if not removed at once.
Carry Sufficient Auto Insurance Coverage
Having the right auto insurance is one of the most important things you can do to protect the value of your new vehicle. If you finance your car, you will be required to carry full coverage by your lender. The cost of car insurance can depend on several factors, including your driving record, where you live, and whether your bundle your auto and homeowners policies together. Our experienced agent can help you find the right car insurance coverage to protect your investment at the best available rates.
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The leaves are changing colors, the air is crisp, and the days are getting shorter. That, plus the arrival of pumpkin spice flavored everything, means fall has arrived! Your kids may have started school again. But there’s still plenty of time to have some fun outdoors before winter weather rolls in. Looking to keep your […]
Common Commercial Property Insurance Exclusions
Commercial property insurance is designed to protect the physical assets of your business from specific perils, including fire, explosions, storms, burst pipes, vandalism, and theft. It protects your building and its contents, along with fences, signs, and other exterior fixtures. It is a core coverage of your business insurance policy.
If you have purchased commercial property insurance coverage for your business, you can expect to be covered for a number of risks. However, you should be aware that the following common damages are excluded from coverage under commercial property insurance policies.
Commercial Automobile Accidents
Although they are the property of your business, your company’s vehicles are not covered under your commercial property insurance policy. You need commercial auto insurance to be covered for both damage to your vehicles and bodily injury or property damage resulting from an accident caused by a driver.
Flood Or Earthquake Damage
As it is with homeowners insurance, damage from floods and earthquakes is excluded under commercial property insurance. The only way to protect your company from these risks is to secure special commercial flood insurance or earthquake insurance for your business. If your company is located in a flood zone or an area prone to earthquakes, our experienced agent can help you find the best quote on the coverage you need.
Equipment Breakdown
Commercial property insurance provides protection against damage to business equipment caused by a covered peril, such as fire or explosion. However, it will not cover damages caused by equipment breakdown or malfunction. Unless equipment breakdown insurance is included in your business insurance package, the cost of repair or replacement will come out of your company’s pocket.
Off-Premises Power Failure
A utility failure affecting your business premises, such as electrical outage or a disruption in water service, could force your business to close for a day or longer. This type of loss is not covered under commercial property insurance. It may be possible to add off-premises damage caused by a covered peril and resulting in a loss of power as an endorsement to your policy.
Excluded Property
Certain types of property are commonly excluded under commercial property insurance, including:
- Money, security, accounts, bills
- Land, piers, docks, and wharves
- Vehicles, aircraft, and watercraft (with certain exceptions)
- Animals other than stock
- Crops, hay, or grain located outside
- Cost of excavation, grading, or backfilling
- Building foundations
- Walkways, roads, and other paved surfaces
- Electronic data
- Cost of restoring information on valuable records
Meet With An Experienced Agent
One of your responsibilities as a business owner is to ensure that you have the right insurance in place to protect your business. Although commercial property insurance does not cover everything, it is often possible to purchase other coverage to fill in the gaps. Our experienced agent will be happy to meet with you to review your business insurance package. We can advise you on the types of insurance you need to fully protect your company and help you find the right coverage at competitive rates.
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Any active person knows the lingering smell of a sweaty gym bag. Even after airing out your equipment or putting it through the wash, the stink can stick around. You might be tempted to wash and dry repeatedly, but this doesn’t always remove those smelly odors. The stench keeps coming back, leaving you frustrated when […]
Understanding The Liability Portion Of Homeowners Insurance
Generally, homeowners insurance is designed to help repair or replace your home and belongings if they are damaged by certain covered perils, such as fire or theft. Most homeowners policies also provide liability coverage in case a visitor is injured on your premises, or you accidentally damage another person’s property. You may also add a personal umbrella policy – a type of insurance that provides additional liability coverage to protect your family’s assets.
What Does Homeowners Liability Insurance Cover?
The personal liability portion of your homeowners insurance policy protects you against lawsuits filed against you by others. It will cover you for:
- Injuries to visitors on your property
- Property damage that you or your family members cause to others
- Damage to others caused by your pets
This coverage pays the cost of defending you against a lawsuit and any damages the court orders you to pay. Unlike other types of coverage, there is no deductible for homeowners liability insurance.
What Are The Different Types Of Liability Coverage?
A typical homeowners policy provides a $300,000 limit for injuries and property damage; however, the limit can be increased for additional premiums. Most policies include medical payments coverage to reimburse you for basic medical bills under a liability claim (e.g., your dog bites someone, or a visitor suffers a minor injury on your property). Standard limits for this type of coverage are $1,000 or $5,000.
Personal Umbrella Policies
Umbrella coverage is sold as a separate policy to provide a safety net of extra liability insurance that kicks in after you have reached the limits of your basic homeowners policy. Many insurance companies will only sell you an umbrella policy if you are carrying a certain amount of liability coverage on your homeowners policy and auto insurance policy. Some companies require that you bundle your homeowners and auto insurance before they will sell you an umbrella policy. The cost of umbrella coverage depends on how much liability coverage you have on your basic homeowners insurance policy and how much risk you represent.
How Much Homeowners Liability Coverage Should You Buy?
The amount of liability coverage you need will depend on your assets. You should buy enough to protect them. Society is litigious in the 21st century. Look at how much you would stand to lose if a visitor was injured on your property and filed a premises liability lawsuit against you. How much could you lose if you or a family member accidentally injured someone or caused damage to their property, or if your pet hurt someone?
Get Help From Our Friendly Agent
If you own a home and other valuable asset, it is essential that you have sufficient liability coverage to protect them. Without the right coverage, you don’t have a safety net should an unfortunate incident lead to a lawsuit. Our experienced agent can review your homeowners insurance policy with you to help ensure you have the liability coverage you need at the best available rates.
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How To Find A Lost Life Insurance Policy
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Crowdfunding Is Not Life Insurance
We live in a world of instant gratification. These days, you can order takeout, book a plane ticket, or even find a Friday night date – all with a swipe and a tap on your phone. Living in the moment is a beautiful thing. But when it comes to financial planning, it’s important to think […]