Renting out part of your house can be a great source of passive income, especially in this economy. Good for you!
When it comes to home insurance, your policy is made up of several types of coverage. One is designed to protect the structure-your home itself. Another is meant to protect what's inside the home-your stuff.
Your home insurance policy will protect your home itself whether you rent out part, all, or none of it. But your tenant's possessions will only be covered if they're related to you. You might consider encouraging them to get renters insurance. You'd certainly hate for something to happen, especially if they're not properly protected.
If you're renting out a finished basement or garden apartment, keep in mind that the drywall, carpeting, and fixtures aren't protected by structure coverage. You may need to increase your personal property coverage to make sure they're protected in case of a fire, or other damage.
Remember, it's always a good idea to talk to an agent if you have questions about your home insurance policy.
