Home Insurance question...?

Question

We own our own home (my wife and I), a four bedroom house that is massive. We don't use at least two of the bedrooms at all for any purpose and have been considering renting at least one of these rooms out to a tenant. Would our home owners insurance be affected by this? I realize contacting the insurance co. just to be sure is best but i wanted to get some thoughts from you all before I did that....not really sure why just to keep it under my hat for the time being in case it does change things ie end up costing us more moneys..thanks.

Answer 1

you will need a liability rider for the renter.  It will not cost much and is a very good idea.

Answer 2

You should notify your insurance company about any changes you make or plan to make regarding your insured property.

Depending on the policy, there could be an endorsement to cover a tenant occupancy, or you may have to carry a seperate commercial policy for that risk, since it is a business venture. Or the insurance company could cancel your policy due to the risk.

Here are a few questions the insurance company may ask:

Is this just a sleeping room, or is board also going to be offered? How much freedom will the tenant have to go about your home? Is there a seperate outside entrance to the room? Does it have seperate bathroom facilities? Will you have the tenant sign a lease, or rent from month to month? Will you personally know the tenant, or could it be a complete stranger? Will you require references? Wll you allow pets on the premises? If no seperate entrance, will the tenant have his/her own key to your home? Will you allow the tenant to have visitors? Will you allow smoking on the premises?

There are a lot of things to consider. Will it be worth the risk to have someone renting a room, who could accidently set your house on fire by smoking in bed?

Answer 3

The answer will vary from company to company.  Some companies all you have to do is notify them.  Other companies will make you extend liability,  Please have your renters take out renters insurance.  If they burn your home down, steal from you or something else if will give you a place to go.  Not a bad idea in this time and age we are living in.  Good Luck

Answer 4

Yes, it can be, in two different ways.  I'd suggest you discuss the possiblity of this, with your agent, before you begin.  It might be as easy as adding a $20 endorsement to your policy.