homeowners-insurance

Homeowners versus Landlord in New Glasgow – Which policy is right for you?

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If you own a single-family home you want to rent out full time, you need to have homeowners insurance in New Glasgow. Or do you need to have a landlord insurance policy in place to cover possible damage that renters are going to make? Yes, having a property you want to rent out full time is nice and allows for additional income. On the flip side, some owners will choose to rent out the home sporadically when they go on vacation, for example. In this case, you need to consider both options. Lets take a look at each, and determine which is right for protecting your home.

For the sporadic rental –
If you’ve decided to make your home a purely “income rental” property you are best served by choosing homeowners insurance in New Glasgow. If you are going out of town for a sporting event, are taking a 10-day cruise, or simply need a hiatus for a few days, the homeowner policy you currently have in place should suffice. Not only will it protect your home (since you are the owner), but the shorter duration is not considered a “full time rental” meaning you aren’t considered a landlord. You are basically “renting out” your home for a few days.

The full time, income rental –
If, on the flip side, you have invested in a home and want to rent it out on a full time basis to a tenant, landlord insurance is an investment worth making. Like homeowners policies, this type of coverage protects the building itself (including fences, shutters, and other additions to the home). Damage from fire, lightning, hail, and wind are also typically covered. Since the renters do not “own” the home, they can’t buy homeowners coverage.

What are the additional differences? When you choose landlord insurance, this covers:
– Liability coverage which pertains only to the rented property itself. For example, if tenants are injured in the home and you are found to be legally responsible, this coverage might shield you from liability. On the contrary, a homeowners policy, protects you (and relatives), whether or not you are in the home you own.

What isn’t covered? –
Whether you have a homeowner or landlord insurance policy, there are certain items/things which aren’t covered by either policy. Personal items your tenant owns are typically not covered by either policy. However, a renter’s insurance policy might add additional coverage which can protect such items.

No matter which type of property you own, or how long you plan on renting it out, the right insurance policies will shield you from many liabilities. Regardless of the manner in which you choose to use this property (rental, full time, income property) it is important to make sure you read the policy terms in full. It is the only way to know exactly what is covered, what isn’t, and how much liability you are going to be shielded from, given the types of damage, injuries, or other issues which may arise in the home.

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