BUSINESS

Examples: When is insurance required for renting a house?

The insurance company may decide that if a person is only renting out their home for a short time, they are willing to accept the rental as an exception without changing to landlord insurance.

Jane, for instance, decides to go on a trip. The daughter of her best friend will be in town for the summer, but she doesn’t have a place to stay.

Jane thinks of something. She agrees to let her stay in the house in exchange for a small rent because she does not want to leave it empty.

The insurance company needs to be informed in a situation like this.

They might want to know more about Jane’s relationship with the “renters.” It’s possible that the underwriters won’t require Jane to take out a landlord insurance policy if they think this is a unique circumstance.

An insurance company may not require landlord insurance if a home is not intended to be used as a rental in the normal course of its use.

They will evaluate each case individually. They might also modify or restrict coverage by adding a rental endorsement.

Also Read  Assuming that you are stressed over dental

Leave a Reply

Your email address will not be published. Required fields are marked *