Traveling has never been faster or easier. Today’s accessible travel options have motivated some homeowners to rent to tenants while jet-setting around the world. Is home insurance still active and effective when a house is rented? Let’s find out.

Home Insurance When Tenants Are Onsite

Rent your home to tenants while traveling or after moving into another living space and you’ll have to rethink insurance. Though home insurance is meant to cover the structure of the home, valuables and even incidents on the property such as dog bites, it has its limits.

Allowing tenants into the home has the potential to nullify insurance coverage, necessitating an update/modification or new policy.

Why Home Insurance Doesn’t Always Encompass Tenants

Take a moment to consider a home rental situation from the perspective of an insurance provider. The agreement is meant to cover the domicile while the owner of the property is onsite.

The owner’s departure from the premises combined with replacement by tenants makes that policyholder a landlord. The Mutual Insurance Partners home insurance policy is meant to protect the homeowner’s personal belongings as opposed to those of tenants.

Therefore, if there is a burglary, vandalism or another unfortunate event, the home insurance coverage might not apply as tenants are living onsite as opposed to the property owner and their family.

Potential Exceptions

There is a chance that home insurance could still be applicable when the house is rented, if the house is rented for a short period of time only, but you would have to confirm with your insurer. Moreover, the insurer might require that you notify them about the tenant situation prior to the formation of that relationship. It might also be necessary to obtain a rider or endorsement for coverage purposes.

If you rent out your home in or near Follansbee, WV, it might be viewed as a place of business, meaning the home insurance would be negated. In such an instance, it might be necessary to add a business policy for a bed and breakfast or hotel.