Last year I gave my home for rent and moved out of state. The rental agreement clearly required the renters to have renters insurance for their property. The house was recently burglarized and the home was damaged. Can the renters file a claim against my homeowner’s policy? Which insurance will pay to repair the damage to the home?
Putting your home for rent significantly increases your risks. Make sure you are adequately covered. Start with these 3 simple steps.
- Get landlord’s insurance policy. Homeowner’s insurance policy does not offer the protection if you are renting out your home. HO policy is designed for homes occupied by the owner. Renting out increases risks significantly. A landlord’s insurance policy should be in place before renting out your home. The coverage is not as broad and the rates are steeper. However if you don’t have the right coverage you will be out of luck when something bad happens.
- Get umbrella liability protection. Besides house and structures that belong to the owner, landlord’s insurance covers all of owner’s possessions, loss of rental income and liability in case there is an injury or lawsuit. It is always advisable to have an umbrella policy for additional liability protection.
- Require renters insurance with sufficient liability. Landlord’s insurance does not cover renter’s property. It is a good precaution to require renters insurance. You should also require sufficient liability protection in renters insurance. In case the renter damages the home you can sue the renter and recover your damages from their insurance company.
In this case your renters can not file a claim on your homeowner’s policy. If you had a landlord’s insurance, it would have covered the damage to home. However you may have tough time recovering it from your HO policy. If the damage was caused by the renter’s negligence then you may be able to recover from the renter’s policy.
If you have to file home insurance claim, please visit http://www.ReClaimsInc.com/can-reclaims-help-you for an excellent free tool that helps you find out whether you got full settlement in 5 minutes of less. You will find additional insights into home insurance claims. You can also ask an expert any questions about your home insurance claim.