There are two major reasons why people build houses. The first is to have a place where they can live. When they already have a place where they live, they could consider building other houses as an investment to make money. The house continues to belong to them while people pay to stay in it for a period. However, renting of houses come with the risk of your tenants defacing the building as well as mistakenly or purposely destroying the building. To check this risk and make sure that you are not suddenly sabotaged or lose your house, it is important to invest in house insurance. This article will discuss the type of insurance that should interest you as a house owner who wants to rent out a house. With the details in this article, you will be able to rent out your home safely with home insurance.
The first thing you should get as the owner of the house is to invest in a Lemonade homeowner’s insurance policy. When you invest in homeowner insurance, you will be covered from circumstances that could destroy your home that was outside the circumstance or control of your tenant. An example of this is natural disasters or an engineering fault during the building that results in the collapse of your building. The insurance would also cover the properties that were inside the building, in this case, the property of the tenant. There are instances where if the reason the house collapsed or developed fault was due to some reasons that are directly traced to you as the house owner, you will be culpable and will be required to provide compensation for the tenant as well. Your insurance company will be in a position to take care of the problems including your house and that of your tenant. However, your insurance policy as a homeowner will not completely cover the house and the properties in it. There are exceptions where the tenant will be culpable. This is where tenants’ insurance as discussed subsequently comes in.
When giving out your house, you should have an agreement with your tenant to get a tenant insurance policy. This would provide some coverage for your house and the property of the tenant. Thus, in a situation where the reason a house collapsed or had issues were directly or indirectly traced to the tenant, your insurance company as a homeowner might refuse to take responsibility. It would now be the insurance company that has provided tenant insurance for your tenant that will be culpable for the damages. You could convince your tenant to use the same insurance company that you are using so that the company can be responsible for both your policy and your tenant’s policy. This way, whenever any damage occurs in your house, the insurance company could assess the situation as your insurance company and that of your tenant. They can subsequently decide if they would be covering for the damages from your insurance policy or that of your tenant.