When you rent out your home, it can have an impact on your homeowners insurance premium. Insurance companies typically consider rental properties to be higher risk than owner-occupied homes, which can result in higher premiums. Here are a few factors that can affect your homeowners insurance premium when you rent out your home:
1. Change in occupancy: Insurance companies may view a rental property as having a higher risk of damage or liability compared to a property that is occupied by the owner. This increased risk can lead to higher premiums.
2. Change in coverage: Your homeowners insurance policy may need to be modified or replaced with a landlord insurance policy when you rent out your home. Landlord insurance provides coverage specifically tailored to rental properties, including coverage for rental income loss and liability protection for landlord-related risks.
3. Additional coverage options: Depending on the insurance company, you may have the option to add additional coverage to protect against specific risks associated with renting out your home, such as loss of rental income due to a covered loss or damage caused by tenants.
It's important to note that the specific impact on your homeowners insurance premium will vary depending on factors such as your insurance company, location, rental agreement terms, and the condition of your property. To get accurate information about how renting out your home may affect your homeowners insurance premium, it's best to contact your insurance provider directly. They will be able to provide you with the most accurate and personalized information based on your specific situation.