If you own a home and are thinking about renting part of it out to other people, you need to understand a few things about your homeowners insurance policy.
Most standard coverage policies have exclusions built in to not provide coverage for renters.
Of course, the specifics of these exclusions vary from insurance company to insurance company but for the most part, the following rules apply.
Always make sure to consult a licensed home insurance agent before you make any final decisions.
1) Part time renters are usually covered.
If you only rent out part of your home as a special thing, (once or twice a year for minimal periods), chances are your renters will be covered.
Of course, the specific wording of your policy will tell you whether or not this is the case for you.
2) If you rent two one or two people, they will be covered.
However, if you rent to more than two people, they will not be covered under your original home policy.
This is when it is time to make a decision as to whether you want to rent to less people, or purchase an additional policy that will provide coverage for your renters.
This additional policy would be a commercial policy that's more expensive.
3) Lastly, if you rent part of your home as commercial space for business purposes, you will usually be covered by your standard home insurance policy.
Of course, check the fine print to make sure that this is the case.