by Guest » Fri Feb 15, 2008 08:41 pm
Hi I'm wondering what to do in 2 different scenarios:
At our main home, we have always rented out the basement apt. How should this be properly covered? Is there a rider for a homeowners policy? Any suggestions for an affordable company in Chicago?
At our summer home, we rent out the place for less than 10 weeks per year. How should this be properly covered? Is there a rider for a homeowners policy? Any suggestions for an affordable company in Michigan?
Thanks very much!
At our main home, we have always rented out the basement apt. How should this be properly covered? Is there a rider for a homeowners policy? Any suggestions for an affordable company in Chicago?
At our summer home, we rent out the place for less than 10 weeks per year. How should this be properly covered? Is there a rider for a homeowners policy? Any suggestions for an affordable company in Michigan?
Thanks very much!
Posted: Sat Feb 16, 2008 03:52 am Post Subject:
At our main home, we have always rented out the basement apt. How should this be properly covered? Is there a rider for a homeowners policy? Any suggestions for an affordable company in Chicago?
Good question, skellkenny. You're wise to ask before there's a problem. I would first suggest calling your present homeowners insurance agent and checking to see if your carrier offers an endorsement for that extra exposure. Most do, and it's normally not that expensive...depending.
Lots of things come into play when renting property you own, whether it's within your primary residence, elsewhere on your property, or stand-alone rental dwellings that you own- typically investment property. It also depends a lot on what relationship you have with the renter, especially when that person resides in your primary residence with you, and crucial for liability coverage purposes regardless of where the rental is located.
Relatives of the insured, primarily immediate family, are normally covered as you would be covered. These contracts are complicated when it comes to this stuff. "Roomers and Boarders" that aren't related to you are a whole different story. I'd ask you to read your insurance policy on the home, but I think you should talk to your agent. There are a myriad of ways to get in trouble here by trying to interpret a homeowner's insurance contract. It takes a lot of experience to truly understand one of these puppies- there are many subtleties and lots of weird nuance.
Lori---> are you listening? I think you'll agree, eh?
Issues you will want to discuss with your agent would be concerning your renter's:
* Coverage on personal property located within your dwelling;
* Extensions of coverage for their property away from the dwelling- like when on vacation, etc.;
* Really Important--> liability coverage for the acts of the renter. This is crucial, and can kill ya if you don't have the coverage. The stories I could tell...
* relationship with you. Relative? Non-Relative? Stranger/Friend (bears on the risk)?
Hope this helps in some way...stay in touch.
InsTeacher 8)
Posted: Sat Feb 16, 2008 07:15 am Post Subject: optimum
I would first suggest calling your present homeowners insurance agent and checking to see if your carrier offers an endorsement for that extra exposure. Most do, and it's normally not that expensive...depending.
Thats quite true! Your insurer would normally choose to offer you that extra shade before they let it go off to some other carrier. But, as it seems you'd need to bargain a lot to get the right kinda benefits added up to your present policy in return for an optimum premium.
Posted: Sat Feb 16, 2008 07:16 am Post Subject: just in case..
Dear friend, theres only one thing that I need to be sure of - that just in case your renters have the renters policy in place, then that would by no means affect your premiums for the enhanced home coverage that you're talking about. Don't forget to pull up this point while you're placing it in front of an underwriter or your broker.
Cassie_blue86
Posted: Sun Feb 17, 2008 11:23 am Post Subject:
Lori---> are you listening? I think you'll agree, eh?
ABSOLUTELY! It's imparative that you get on this yesterday...first off there are many many exclusions that will apply the way your homeowners sets now re:tenants...as another poster mentioned the renters personal property would be their own responsibility if they do not have a renters policy and (God forbid) your home burns and they lose everything...there is no coverage for their property...this isn't your responsiblity it's theirs but a valid point...The liablility is HUGE, and more than likely the way your policy sets now you have ZERO coverage...So you need to get to your agent fast....there should be some endorcement they can place on your H.O. including landlords liablity...but could be a case where they have to write a separate policy for the basement...time share stuff...that's a different animal but again your agent will be able to direct you...let us know your outcome, it could benefit others...and welcome to the community.Posted: Sun Feb 17, 2008 12:19 pm Post Subject:
Sounds like you got to pick up the phone and call your agent. I was not aware that having someone not related in your home could do this, I bet a lot of people are not aware of this policy. Great information, you post has prompted some great information for the whole community.
Posted: Sun Feb 17, 2008 12:56 pm Post Subject:
This information probably all replies to the injury part of the policy too right? What is the renter gets hurt on your property or one of their visitors get hurt on your property? How does all this effect the policy?
Posted: Wed Feb 20, 2008 04:37 am Post Subject:
Good questions goodnatured. There are so many factors, that I think stopping short of consulting several companies would do you harm. Get several professional opinions (I know some lie here)
Posted: Thu Feb 21, 2008 06:21 am Post Subject:
goodnatured said:
This information probably all replies to the injury part of the policy too right? What is the renter gets hurt on your property or one of their visitors get hurt on your property? How does all this effect the policy?
Great question. It opens up a whole bunch of liability and other tort issues. The insurance geek in me wants to launch into a long-winded dissertation on tort claims and how insurers HATE IT when insureds have exposures that the carrier isn't aware of. There are volumes on how insurers have been bushwhacked by unknown exposures and related covered losses. A lot of it lies with the producer and his/her lack of education and lack of educating the policyowner.
Let's say the renter slips and falls on the property, get's hurt, and incurs medical bills, loss of wage and all the other stuff that comes with these losses. He decides to sue the landlord. Good luck getting an insurer to pay unless the policy has been properly endorsed or a specific contract has been purchsed for this purpose. Coverage for this stuff is available, and like I said in my earlier post- depending on the situation, at times it's not that expensive. So let's say that the landlord doesn't have the proper coverage. It's ridiculous to try and sue the insurance company in most every instance. This exclusion to the standard homeowners policy has been around since dust was a new invention. You can try to sue, you can try to sue anyone. Who has the lawyers? They do, and the poor sob that's filing the lawsuit has to find some chump lawyer will to do it on contingency. T
There's a number of people here who probably have experience with persons trying to sue an insurance company for liability issues. It's a tough haul, and I hope you have a lot of time and money to spend paying for your legal fees and frustration.
Than consider the poor landlord. Since there's no coverage under his policy, the insurance company won't provide his defense costs. Ouch. That's gonna leave a mark on that poor landlord.
Lori said:
the renters personal property would be their own responsibility if they do not have a renters policy and (God forbid) your home burns and they lose everything...there is no coverage for their property
Absolutely true, and your agent should know this. To add to this, the loss of the personal property would pale in comparison to the costs of a liability lawsuit situation. I know Lori is definitely aware of this, I just thought of when I was adjusting renter insurance losses a loooooong time ago and remembered the (now) little $$$ amount that was paid out for losses. Cover the property, but ABSOLUTELY COVER the liability.
This issue goes into lots of other directions, and would make for a qreat continued thread. If anyone wants to branch if off in a different direction, please do so.
Sorry I rambled...it's late and I thought that was a great question. I'll stop now.
InsTeacher 8)
Add your comment