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Renting out your home can provide a valuable source of income, either with long-term renters or through Airbnb. In fact, many New Braunfels homeowners offer up their homes for rent during the annual Wurstfest. This celebration of all things German is held each year in early November. However, what most homeowners miss is that their home insurance policies usually don’t cover incidents in the home while they are renting it out.

Comaltex Insurance Agency, Inc. has served the New Braunfels, Texas, area since 1948. Below, they highlight exactly how homeowners can put themselves at risk when it comes to renting out their properties. 

Don’t Assume Your Home Insurance Policy Covers Home Sharing

Homeowners insurance is designed to cover the cost of repairing your home due to damage caused by fire, the wind, or other natural disasters. It will also cover you if someone is injured on your property. However, when it comes to home sharing, most companies will require you to purchase an additional endorsement, which is added to your policy. 

When Home Sharing Is Your Business

If you rent out your home to generate income, most insurance companies will view this as a business activity. This means you’re required to get business insurance. In addition to this, landlord insurance is a policy covering the structures on your property from damage, but not wear and tear from your tenant. If you’re renting out your property long-term, require your renter to have renter’s insurance.

How the Home Insurance Industry Is Adapting

Insurance agencies offering home insurance are starting to offer policies that include renting and home sharing endorsements. Prior to renting out your property for even one night, it’s imperative to review your current coverage. One accident is all it takes to ruin homeowners; don’t get caught without the appropriate insurance.

If you’re considering renting out your property long-term, or even for infrequent Airbnb guests, understand which coverage you need in case there’s an accident. The experts at Comaltex Insurance Agency, Inc. are well versed in providing their clients with coverage to suit the needs of landlords, as well as homeowners using their property as a primary residence. Before renting out your property, give them a call to discuss your insurance options at (830) 625-7511, or visit the website for more information. 

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