In today's tough economic climate, finding tenants for your extra space can be a great source of additional monthly income. If you're lucky enough to own a home you're thinking of renting out, you need to protect that luck with the right kind of insurance. Here's what professionals want you to know about covering yourself as a landlord with insurance in Worcester:
Insurance in Worcester for Landlords: A Guide
Homeowner's Insurance Might Cover Your Own Home
If you're looking for tenants to move into a spare bedroom or basement of the home you occupy, you might not need to worry about buying full landlord insurance. In these instances, your own homeowner's insurance might be able to cover you. However, it's a good idea to check in with a local Worcester insurance agent to see if you need to add any special endorsement to cover possible damage to your tenant's possessions.
Landlord Insurance Is Essential for a Second Home
Once you rent out a dwelling separate from the home in which you're living, your own homeowner's policy no longer protects you. Landlord insurance policies take into account the unique ways in which you become vulnerable when you lease a structure to be someone else's home. They are made to cover your liability in case your tenants or their visitors hurt themselves in an unforeseen situation or unknown condition, such as a loose stair railing, or a faulty electrical outlet.
Landlord Coverage Can Protect Your Rental Income
One of the unique benefits provided by landlord insurance is the protection it offers you against the loss of rental income. When you start to rent out property in Worcester and beyond, you most likely create a budget based on the monthly income you expect from tenants. If your rental home becomes uninhabitable due to a covered accident, such as a fire, a broken water heater, or a tree falling on your roof, your landlord insurance may help make up the lost rental income while the condition is being repaired.
How to Lower Your Landlord Insurance Premiums
When you talk to your insurance agent about the types of coverage you need as a landlord, you'll have the opportunity to tailor a policy to your exact needs and budget. You can generally save money by only renting to non-smokers and requiring your tenants to purchase renters' insurance.
Your local Worcester insurance professional can provide you with the information you need to safely cover all your bases as you become a landlord.