On Becoming a Landlord--Insurance for Your Charlotte NC Rental
On Becoming a Landlord—Insurance for Your Charlotte
NC Rental
Are you about to become an unintentional landlord?
Perhaps you need to move from your existing home for a new job. Or there’s
not enough room for the new baby. Maybe your mother-in-law is coming to live
with you.
But you have one tiny problem. Market prices have fallen since you purchased
and you’re underwater on your mortgage. You decide that renting the home while
the market recovers is your best option. You are going to join the
many Charlotte
NC home owners who have become landlords.
Here are some tips about how to design your homeowners insurance when
your primary residence turns into a rental.
- You will need to convert your existing homeowners policy into a Dwelling
Fire Insurance Policy. Why? A Dwelling Fire Insurance Policy is the only way
to get liability coverage for a rental property. If someone gets hurt at your
rental, you want to have liability coverage.
- You will want to require your renter to get a Renters Policy. This will
cover the tenant’s personal property and liability.
- The tenant needs to list you as an “Additional Interest” on the Renters
Policy. This will ensure that you are notified is the Renters Policy is
cancelled. A guest who gets hurt and sues will get payment for damages from the
Renters Policy rather than from you, the property owner.
Want to know if you may become an unintentional landlord?
Request a free
opinion of value of your Charlotte NC home.
Copyright 2011. Carol Fox. Allen Tate Realtors *On Becoming a
Landlord—Insurance for Your Charlotte NC Rental*