Rental Home Insurance Questions Answered

July 27, 2014

homeowner's insuranceAre you planning to make a move out of town or need to downsize and are unable to sell your current home? Or do you have a second home that you have considered renting out to bring in additional income? If so, renting out your Chicago home in today’s market can be a wise personal finance decision, but you need to be sure that you are adequately covered with the right type and amount of insurance. The insurance experts at the Equifax Finance blog discuss the type of coverage you will need with a rental property in the recent article, “

What Insurance Do I Need If I’m Renting Out My Home?

Your existing homeowner’s insurance is not appropriate for renting out your home, and if your home becomes a rental property, your homeowner’s insurance policy may not cover claims for coverage (even on short-term rentals).  Contact your insurance company to purchase a rental property policy that will provide the coverage you need for the building, loss of rent and liability as the Chicago real estate property owner.

If your rental home will be furnished, you will need a fire policy that includes the contents of your home. It’s important to note that coverage for theft and vandalism is not available to homeowners renting out their homes. The cost of policy will depend on the location of your home, the type of home and the amount of insurance needed. You should be sure that your home also has a current flood policy. The article recommends that an umbrella policy may be your best option for protection.

Whatever your situation may be, before you actually rent out your home, contact your insurance company to learn about the different options available and needed for proper coverage.

Learn more in the full article on the Equifax Finance blog and while you’re there, explore the many helpful articles about insurance and other personal finance topics from credit to identity theft protection to retirement savings and more.

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