Mitigate Rental Property Coverage Gaps

June 2, 2016||inPersonal Insurance|homeowners insurance, personal insurance, personal liability, rental property

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.
Mitigate Rental Property Coverage Gaps
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711

  • 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

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.
Read more
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.
Read more
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.
Read more
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.
Read more
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:
Read more
Insurance Policy

Why Personal Liability Insurance is Essential for Homeowners, Condo Owners, and Renters

An essential part of home, condo & renter coverage often overlooked is personal liability insurance, which provides financial protection if you’re legally responsible for causing bodily injury or property damage to another person, both on and off your property.
Read more
Spam Phishing Scam

Recognize Spam and Phishing Emails

As more of our daily lives move into cyberspace, hackers, cybercriminals and spam bots may lurk behind every new message that shows up in your inbox. Even robust spam filters may not be able to catch every unwelcome email. Fortunately, you can act as an additional line of defense for yourself and your electronic devices by understanding the warning signs of spam and phishing emails.
Read more
Distracted Driving

How Distracted Driving and Texting Impact Your Auto Insurance Premiums

One major reason for auto insurance premiums going up is the rise in distracted driving, especially texting while driving. Distracted driving has become a leading cause of accidents, pushing up costs for insurance companies and, ultimately, leading to higher premiums for all drivers.
Read more
Apartment living room

Keep Your Home Safe While on Vacation

Taking a trip and exploring the world is fun, but leaving your home unoccupied has some risks.  Before departing, protect your property from accidents and criminals by considering the following precautions.
Read more

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.