Turning your home into a rental property is a big financial decision that comes with details most people don’t think about right away. At Trahan Insurance Agency LLC in Griswold, CT, we want homeowners to know that the moment you start renting out your property, your standard home insurance may no longer provide the protection you think it does.
Standard Home Insurance Is Built for Owner-Occupants
Your homeowners policy was written with one clear assumption: that you’re the one living in the home. The moment a paying tenant moves in, that assumption changes, and so does your risk profile. Most standard policies won’t cover losses that happen while the home is being rented to someone else, which can put you in a difficult position if something goes wrong.
What Type of Coverage Do You Actually Need?
If you plan to rent your home out on a long-term basis, you’ll likely need a landlord policy or dwelling fire policy. These are designed specifically for rental situations and typically include protection for the structure, liability coverage, and sometimes even lost rental income if the property becomes uninhabitable due to a covered loss.
Short-Term Rentals Are a Different Conversation
Renting through platforms like Airbnb brings its own set of coverage questions. Most standard policies simply don’t account for this kind of arrangement, so you may need a specific endorsement or a separate policy to be fully protected.
Get Clear on Your Coverage Before You Rent
Before you hand over those keys, contact the team at Trahan Insurance Agency LLC in Griswold, CT, to make sure your coverage actually lines up with what you plan to do with your property.