You just bought a second home but obviously you can’t be in two homes at once so why not rent one of them out! This can be a great way to increase your wealth and put money towards retirement of kids school.

Lets say your perfect little rental just went up in flames. You, the landlord have insurance and you require your tenant to have renters insurance, thank goodness. Now, generally, the landlord is responsible for structural damage (unless the fire was the tenant’s fault), and the tenant is responsible for damage to his/her own belongings (unless the fire was the landlord’s fault).  Even if the tenant caused the fire, you should still file a claim with your own insurance company.  Your insurance company will pursue the tenant and the tenant’s insurance company to collect payment from them.

If the at-fault tenants have renter's insurance, in the long run, their carrier will probably pick up the tab, but it will most likely be settled behind the scenes through subrogation.   If your tenants have no insurance, your carrier will still cover your losses and they might sue the tenants, if they think it's worth their time and money to pursue it. In that case, you might learn about that outcome because you could be subpoenaed as a witness for the plaintiff (your carrier). All landlords need to require their tenants to have a rental policy. Its in everyone’s best interest.

For more information on second homes, short term rentals and income properties, contact RISE Insurance at 423-541-1111 or chad@riseins.com for a free policy review to make sure you are properly covered. You can request a quote at https://www.riseins.com/personal-insurance-quote-request or visit our website www.riseins.com to learn more!