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Saturday, 9 November 2013

Renters Insurance And Your Rental Suite

By Christian Fenell


These days, people often pay part of their mortgage by renting a part of their home. Actually, so that they can have a renter to help pay the mortgage, many people are buying homes that have independent suites in them or building suites into their homes.

The most common problem with suites is that of the legality of having a suite built into a single-family dwelling. Before you build a suite into your current home you will need to check out the local bylaws to make sure that you're allowed to have a legal suite in your home. And don't assume that just because a home has a suite built into it that it's been legally done; check the house's zoning to confirm whether a suite is legal or not.

Proper additional insurance is required for a home with a suite in it; make sure you talk to your insurance provider to make sure that you are properly covered. You will probably have to inform your mortgage lender that you have a rental suite in your home, too.

Renter's Insurance

Many renters wrongly assume that you, as the landlord, are responsible for their belongings in the event of a catastrophic event. Conversely, only the property itself is covered, not their personal items, furniture, electronics, or clothes.

To protect their belongings from these type of events, including theft, tenants should get renter's insurance. This type of insurance can cover them for any liability if someone gets injured in their suite, as well as protect them from all these things.

Renters insurance should be insisted upon by you. Sometimes this is a condition of the landlord's rental agreement. You should require your tenants to have this insurance for two reasons. In case your tenants need to step out while repairs are being made to their home, the insurance company will provide them with money for hotel accommodations. And finally, should one of your tenants gets seriously injured while inside his home/condo/apartment, the insurance will cover the medical bills as well.

Once you have your suite in place and you are adequately insured, it's time to look for a renter. Put up an advertisement for renters iin the event that you don't know anyone personally who wants to rent it. However, be sure to perform background checks; if they're living in your basement, you want to make sure that a renter is going to fit in with your lifestyle.

Finding out the legalities of being a landlord is another important step. Even if a family member is your tenant, your legal rights and responsibilities should be understood by you; many times when there is a problem between a tenant and a landlord it is due to a misunderstanding about the legal rules that both parties have to follow. Otherwise, renting out a suite or even just a room in your home can be a really good way to help you make your mortgage payments and maybe even help out a family member who needs a reasonably priced place to stay.




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