What to Know When Renting Out Your Home

Smart Insurance Tips

With the busy season rapidly approaching, it’s important to be aware that your Homeowner policy may have coverage exclusions or limitations regarding rentals. The duration, frequency, and way in which you rent out your home are all factors that may affect your insurance protection.

  1. Clearly communicate with your insurance broker about your rental plans. Failure to notify your insurance carrier before renting may result in the denial of a claim and/or cancellation of your policy.  
  2. Each insurance carrier takes a different position on the rental of a Primary or Secondary home. Some carriers do not allow renting out one’s Primary home
  3. Many Homeowner policies provide continuous coverage for monthly or even seasonal rentals (e.g., Memorial Day through Labor Day) when renting to the same tenant. On the other hand, frequent rentals to multiple tenants can be considered a business exposure that may exclude coverage by your policy.
  4. Be aware that renting out your home through home-sharing sites — like Air BNBVRBO and HomeAway — may trigger coverage exclusions or limitations.
  5. If you decide to rent out your home, be sure to require your tenant to provide proof of liability coverage while in your home.
  6. With renting comes increased liability exposure. Please review your personal liability limits and be sure to add any home that you own or rent to your Excess Liability (Umbrella) policy.

For more information contact: 
Christopher F. McDonald | Amaden Gay Agencies
P.O. Box 5004 | 11 Gay Road | East Hampton, NY 11937 | P 631.324.0041 ext. 341 | F 631.324.0671 | cmcdonald@amadengay.com

The Importance of Insuring Your Valuables

Smart Insurance tips

Valuable collections and unique personal items almost always need their own insurance for proper protection. It’s important to have a discussion with your insurance broker whenever you acquire valuables ranging from fine art, antiques, jewelry and musical instruments to silverware, wine, stamps and coins. By scheduling your valuables, you’ll be in a better position in the unfortunate event of a loss.

  1. Homeowner insurance
    • provides protection for “personal property,” intended for things that can be easily replaced, such as clothing or furniture. However, your homeowner policy’s coverage for valuables is more limited, and your deductible applies to all claims.  
  2. Itemize your valuables
    • By itemizing your valuables on your insurance, you’ll get coverage for an agreed value on each item, and no deductible applies.
  3. Coverage is broader when valuables are on their own policy
    • For example, jewelry on a valuable collections policy can be covered for “mysterious disappearance” or breakage, both of which are excluded on homeowner insurance.
  4. Market appreciation
    • Some policies even include coverage for “market appreciation,” in the event that covered valuables have appreciated above the agreed values stated on the policy. 
  5. Appraisal / bill of sale
    • An appraisal or bill of sale is not always needed in order to itemize certain valuables.
  6. Blanket policy
    • Rather than Scheduling your valuables, you can cover them on a “Blanket” policy, which does not require itemization. Only the total value of your collection is needed, as well as the value of the most expensive piece.
  7. Cost of itemizing
    • The cost to itemize assets like art, antiques and wine is surprisingly inexpensive.

For more information contact: 
Christopher F. McDonald | Amaden Gay Agencies
P.O. Box 5004 | 11 Gay Road | East Hampton, NY 11937 | P 631.324.0041 ext. 341 | F 631.324.0671 | cmcdonald@amadengay.com