Can I rent my house out to generate income?

There are many people taking advantage of city dwellers escaping the city due to Covid.  These families are feeling that the suburbs will be better suited for their family’s verses being stuck in an apartment.  Rents are at an all time high and families with second homes are helping supplement their income by renting out unused homes.

Before listing your house up on a property rental site, you need to evaluate a couple things, first: Will my homeowners’ insurance cover me if I rent my home out?

Homeowner’s Insurance
If you aren’t using your primary home and you want to make generate income by renting out your home. Depending on the circumstance, many traditional homeowner’s policies will cover one-time rentals that span one or several weeks. In an owner-occupied house, always check with your agent and insurance carrier.  If you plan to rent your home out longer term, you will need change your policy to a Dwelling Fire policy.

If you have a weekend home and have it insured as a secondary property and then decide to rent it out, you may need to transition the property to a Dwelling Fire Policy as well.

Landlord or Dwelling Fire Insurance
Just like homeowners’ insurance, a rental policy will cover physical damage to your home.

Rental property insurance coverage will vary, but policies will generally cover the dwelling (the home) or structure of your property, contents of the property belonging to the landlord, liability coverage and loss of rental income.

Unlike renter’s insurance, insurance that your tenants purchase to protect their property and personal liability, rental property insurance does not cover the personal property of your tenants.  The dwelling fire policy will coverage the landlord’s property that they leave on premise.

Although Covid is a not a trigger to cause a loss of income claim, if you have a physical loss at your property and can not continue to rent the home out, you will want to make sure that your insurance policy will cover you for loss of rent.  Most Dwelling Fire policy have loss of rent built into their coverage, but speak with your agent to confirm you have the appropriate coverage.

For more information reach out to Daigle & Travers Insurance.  We have two convenient locations in Connecticut: Darien, and Westport.  One of our many experienced insurance professionals will be able to guide you throw the insurance process.  We can be reached at 203-655-6974 or at