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The Murphy Insurance Blog


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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.

rental propertyIn addition, some home owners 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.) Thus, here are some recommendations and tips to consider for managing the risks that arise from this short-term rental activity.

  • The home owner 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 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.  

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