A homeowner may rent property to tenants on a continuous or regular basis. There are important measures that homeowners should take to protect their rental property investment. Here are some recommendations and tips if you continuously rent out residential property.

  • Liability coverage pertaining to rented dwellings with 1, 2, 3, or 4 families should be added to the homeowners policy via an additional residence rented to others 1, 2, 3 or 4 families (HO 24 70) endorsement.

  • A separate dwelling property policy is needed for the property exposures to these rented units.
  • The property owner should verify that the renter or lessee has proper tenants insurance for this leased property by obtaining a certificate of insurance.

In addition, some homeowners occasionally rent their home out to other parties on a short-term basis—a situation that can create new loss exposures. (An example is an Augusta, Georgia, resident who rents out her luxury home during the week of the Masters Golf Tournament.)

Here are some recommendations and tips to consider for managing the risks that arise from this short-term rental activity.

  • The homeowner should clear this activity with his or her agent to verify that coverage is in place during this rental time period.
  • The property owner should collect a sizeable damage deposit from the tenant and check his or her references.
  • A short-term rental contract should be used, making the tenant liable for all damages to the building and personal property and all injuries.
  • The property owner should ask the tenant for proof of personal liability coverage, which can be found under the tenant’s homeowners or contents policy.

Copyright 2016  International Risk Management Institute, Inc.

Read Other Blog Posts

Family decorating tree

Decorate Safely During the Holidays

While holiday decorations can be fun and beautiful, they can also present fire hazards. To keep your home and family safe throughout this holiday season, consider the following decorating tips.
Thanksgiving Safety Tips

Thanksgiving Safety Tips for a Happy Holiday

Thanksgiving is a time to gather with loved ones, share a delicious meal, and reflect on all we’re grateful for.  To help you celebrate safely and ensure that your holiday is filled with joy, not unexpected mishaps. here are some tips to keep in mind.
Car tire

Vehicle Breakdown Safety Basics

No one ever plans to experience a vehicle breakdown. That’s why it’s important to plan ahead and be prepared in order to handle such a situation safely. Implement the following guidance to ensure you remain safe and injury-free in the event that you get stuck on the road.
Calculator

How Insurers Calculate Premiums

Depending on the type of policy, an insurance premium must be paid monthly, twice a year or annually. Each policy type will have also have a different premium amount based on the coverage and policyholder. It’s essential to understand how premiums are calculated so you can secure the best deal without sacrificing coverage.
Drowsy

Preventing Drowsy Driving

Every year, the National Sleep Foundation organizes Drowsy Driving Prevention Week to raise awareness about the dangers of driving while fatigued.
Smoke Detector

Daylight Saving Time Change: A Perfect Reminder to Check Your Smoke and CO Detectors

Daylight savings time is a perfect opportunity to keep your home safe by checking your smoke and carbon monoxide (CO) detectors. Time change days are memorable markers, making it easy to establish this habit without any extra reminders.
Flooding

Why Flood Insurance is Essential: Lessons from Hurricanes Helene and Milton

The devastating impacts of Hurricanes Helene and Milton have shown that flood risk isn’t limited to coastal areas. These storms have highlighted a crucial gap that individuals and businesses need to be aware of: flood damage is generally not included in typical home, condo, renters, or commercial property insurance, making a separate flood insurance policy essential for true protection.
Deer

Defensive Driving to Avoid Deer Collisions

With deer mating season in full swing from October through December, drivers face an increased risk of collisions. As deer are more active, especially around dawn and dusk, habitat loss has pushed them closer to roadways. Here’s how defensive driving can help you avoid an accident.
Driving Car

Factors Affecting Your Car Insurance Rate

The cost of auto insurance is influenced by a wide range of factors. Together, these variables shape the overall cost of auto insurance. With this in mind, it can be helpful to better understand how the following elements may impact your rates:

Visit Our Homeowners Insurance Page

Homeowners Insurance

At Murphy Insurance, we take great care in assessing your options for homeowners insurance to ensure that you receive the most favorable value. Our dedication to serving you entails collaborating with highly-rated insurance providers and conducting comprehensive assessments of available choices. Our goal is to achieve the ideal equilibrium between affordability and coverage that suits your unique needs. Please let us provide you with a customized homeowners insurance quote.