A lot of homeowners find themselves dreaming of what adding rental income to their pocket could do for their lives. But if you’re thinking about renting a room in your home or more, you want to make sure you understand the insurance implications.
A common misconception about home insurance is that as long as the home has insurance it is insured and that it doesn’t matter if you have renters. This isn’t always true. And until you explain your situation to an insurance professional, you simply won’t know if you’re actually setting yourself up for a situation where you’re left with no coverage at all.
A regular homeowners policy is meant for properties occupied by your family. Once a rental suite is added or if the property in its entirety is rented out, this is considered to be a material change. You need to talk to your home insurance broker BEFORE anything happens to see if your insurance provider is willing to insure the change. Not all insurance companies offer landlord insurance and you want to make sure you give yourself enough time for your broker to find an insurance company that will put together a landlord’s insurance package that fits your situation.