Important when renting out your house: Check your insurance!

Renting out your house for extra income is becoming more and more popular. It makes sense as the rent of private houses by guests is also rising. A commonly forgotten part is to arrange the right insurances. We of Rental Valley offer carefree property management and with this blog we provide you with the most important information regarding residential insurances.

Rental damage

Thankfully, damage occurs at only 1 out of 5000 guests according to Booking.com. You can try all you want to prevent damage by clarity of house rules and adding a personal touch, but accidents still can happen. On the other hand, you want to tastefully decorate the house with your belongings to create a homely ambience ánd be able to leave your home with a relaxed feeling!

Host guarantee

One out of few platforms offering a Host Guarantee is Airbnb, which protects you from material damage up to € 800.00,00. Damage caused by guests to the property or belongings are covered, like for example the house burning down. Not included are among other things art and jewellery. Airbnb presses that the Host Guarantee is not to be considered as a replacement of an insurance. As mentioned, not a lot of other platforms offer a service like this which generally leaves the host at a worse place.

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Residential Insurance

I already have housing insurance for my inventory, property and liability, all covered right?

Nope.

Most insurances allow guests to stay in a house, but do not cover rental! This was the default up to a few years back, where now the right choice of insurance company or the right additions can cover you after all for vacation rent as well.

Chances are good that your current insurance does not cover you at all or not completely. Mostly the terms and conditions are only valid when the house and inventory are used privately. This is not the case during rental and insurance companies see this as an increased risk of damage. It can simply be decided that you are not covered at all or that your contribution needs to be upped. Even when the insurance does cover insurance, the terms vary greatly in number of days or even a limited amount of rooms!

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Start at your mortgage provider

All together, we advise you to start at your mortgage provider. Are you allowed to rent out your house? Subsequently, you can look at the possibilities your current insurance company has to offer. Did you know you are obliged to report rental to your insurance? We recommend you to dive into the terms and conditions by yourself and carefully read through everything related to rental.

When looking at our table above, Univé might seem a good choice at first hand. However, the conditions show that fire damage caused by scorching, melting, charring and/or scalding in the rented part is not insured. Allianz looks quite nice upfront as well as they cover rental standardly, but a closer look shows that this only insures the rent of one room!

When you are all up to date and find a right choice for your situation you can rent out your home with peace of mind. Want to take carefree rental to the next level? Consider leaving the management of your property and maximizing your income up to Rental Valley!

Still unsure what to do or do you want to know more about what we can do for you?

Give us a call or send us a message

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