CORNERSTONE INSURANCE QUICK TIPS: RENTING YOUR HOME
You may be considering renting out your home for extra income on either a short or long term basis. Though this seems ideal, it can also pose challenges. Take the following into consideration to protect your property:
- Contact your Cornerstone Insurance broker to advise of the change in occupancy so that your insurance can be updated. Material changes such as a change in occupancy, require that you notify your broker within 30 days.
- Ask for references from all potential renters, even the ones you know. If you uncover any red flags while checking references, do not agree to rent your home.
- Draw up a rental agreement that defines the terms of the rental including any restrictions, insurance requirements and occupancy guidelines.
- Collect a security deposit which can be returned, upon departure of the renter, if there is no damage to your home.
- Take pictures of all areas of your home before the rental commences to show its’ condition and the property that remained. Vandalism and theft caused by renters is an exclusion of the insurance policy. You will want to check your policy for additional coverage exclusions.
- Remove or securely store personal property, including all valuables. There is no coverage for personal property under the policy, so coverage must be added for coverage to apply. Discuss your coverage options with your broker.
- Depending on the rental scenario, have your mail forwarded or held until you return.
- Provide your contact information to both the renters and your neighbours in case of an emergency.
As the landlord, your policy only provides coverage for the home and contents you have insured. Your renters’ personal possessions and liability are not covered under your policy. Have your renters contact a Cornerstone Insurance broker to obtain their tenant insurance policy prior to moving in.