Renting Out Your Home in Missouri? Make Sure You Have the Right Insurance
Renting out part of your home can seem like an easy way to bring in some extra income. Maybe someone is staying in your basement, a spare bedroom, or you are even renting the entire property. While it may feel simple, it can create serious problems with your insurance if your policy is not written to match how your home is actually being used. Without proper coverage, an insurance claim can be denied, delayed, or paid for much less than you expect.
How Renting Changes the Way Insurance Sees Your Home
Insurance companies generally view homes in two categories:
Owner-occupied, meaning you live in the home full time, and Rental property, which means someone else lives in part or all of it and pays rent.
If your policy lists your home as owner-occupied but you are collecting rent, the insurance company may say you changed the risk without notifying them. That can result in them saying the policy no longer applies in the same way after a loss.
Renting out part of your home without the right insurance can create serious problems if something goes wrong. A claim could be denied or reduced, damage from smoke, fire, or water might be pushed onto the tenant, and loss of use coverage may not apply to either of you. Repairs could exclude the rented space, lost rental income may not be reimbursed, and liability coverage might not protect you if a tenant or guest is injured.
What Insurance You Should Have Before Renting
Homeowners who rent out space should speak with a professional and consider adding insurance that covers rental use. This can include a landlord policy, rental dwelling coverage, protection for lost rental income, and added liability coverage for tenants and their guests. Tenants themselves should also carry renters' insurance so their belongings are protected, because a homeowner's policy does not normally cover a tenant’s personal items.
Why This Matters When You Need to File a Claim
Insurance companies often look for reasons to reduce payouts. When they discover someone has been renting a part of the home and it is not written in the policy, they may investigate more aggressively, delay payments, deny repairs to the rental area, or lower the settlement amount.
A public adjuster can help prevent that from happening. Our St. Louis public adjusters at Edwin-Claude understand how insurers respond when hidden rental use is uncovered during a claim and can help protect the coverage you thought you had.
What Homeowners Should Do Right Now
If you are renting part or all of your home, take time to check your current policy and make sure it reflects how the property is being used. Do not assume you are covered just because you have a homeowner's policy. Ask questions ahead of time and speak with a public adjuster or insurance professional if you are unsure.
Contact Our Missouri Public Adjusters for More Information!
Renting out space in your home can be a smart financial choice, but you need to ensure your insurance policy can keep up. The worst time for the insurance company to find out about a tenant is after a loss has already happened. Making sure you have the correct coverage now helps ensure that when something goes wrong, your claim pays the way it should. If you have questions about a claim, reach out to our St. Louis Public Adjusters at Edwin-Claude today!
