Renting out your home is an easy way to make passive income. With a well-managed property, you do not have to worry about renters calling you continuously to fix the house. In fact, with the right tenant in your home, you can sit back and reap the rewards of making a good financial investment, right? Not so fast. You still need to protect your building . The following three tips that will help you secure your home.
Purchase Dweller’s Insurance Coverage
Since your homeowner’s insurance will only cover risks when you live in your home, purchasing a dweller's insurance policy is the best measure you can take to ensure that you protect the structure of your home. With a dweller’s insurance policy, your insurance company protects the outside and the overall structure of your home in the event of a loss. This policy covers:
• Weather-related damage
• Falling objects
By purchasing the best dweller’s insurance policy, you can make sure that damages caused by your tenant are covered and ensure you can rebuild your home even after experiencing a loss.
Hire a Property Management Company
A property management company is a simple way to ensure that all repairs are handled in a timely fashion when you cannot take care of them. Property management companies offer a host of services that make renting your home to a tenant easy, including:
• Fixing repairs
• Locating great tenants
• Collecting rental payments
With a systematic approach to renting your home, you will have fewer problems and you can continue to receive income from your home.
Require Tenants to Purchase Renter’s Insurance
Renter’s insurance is a form of insurance that protects the contents of a home or an apartment. Since you are renting your home, a renter’s insurance policy protects your tenants directly and protects you indirectly. By requiring him or her to have renter’s insurance, then your insurance company does not have to cover all of the costs if your home is damaged by a fire. Their renter’s insurance coverage will help cover some costs since they are liable.
Renting out your home is a great way to make money passively; however, there are some measures you should take to ensure that your home has complete protection, including purchasing a dweller’s insurance policy and requiring your tenant to purchase a renter’s insurance policy.