Houston Homeowners Insurance Considerations in Rental Situations
Today, people who own real estate in Houston sometimes consider earning extra money by renting out a spare bedroom in the home temporarily. Although this strategy may assist families in obtaining additional income, most experts advise engaging in careful financial planning first. Texas property owners should carefully review any applicable homeowners insurance in Houston in order to ascertain whether the policy will cover losses in a temporary rental “home-sharing” situation.
An Expensive Monthly Cost
Today, most real estate owners carry homeowners insurance to safeguard against unexpected property losses, such as damage caused by a leaking roof or a flooded basement. Homeowners insurance in Houston protects many families when a crisis strikes in a residential environment.
A recent online report about annual homeowners insurance premiums across Texas revealed that the residents of Houston tend to pay higher monthly premiums in some cases than people residing in other communities in the state. In fact, in the hypothetical situation of a resident with above-average credit carrying homeowners insurance in Texas covering a $150,000 brick veneer single family dwelling, Houston ranked as the ninth most expensive Texas community in terms of annual premium costs. Homeowners insurance in Houston often costs a considerable annual sum to maintain.
Making Money From Home
Some online companies offering “home-sharing services” today, such as HomeAway, Airbnb and FlipKey, invite homeowners to earn part-time money by renting out guest bedrooms to visitors on a short term basis. Households in popular vacation destinations may earn a useful second income this way, supplementing their earnings by allowing guests to stay in the residence while the owners vacation elsewhere.
While homeowners insurance in Houston frequently protects against a variety of common loss scenarios, experts caution that people considering temporary short term real estate rentals should check their policy provisions carefully in advance before agreeing to rent out the premises even for brief periods of time. Some policies won’t cover any kind of rental, including short-term rentals or exchanges. Many people who offer their premises for brief rentals reportedly obtain supplemental specialized insurance coverage for the real estate for this reason.
For instance, suppose that a couple carrying homeowners insurance in Houston decided to spend a brief vacations at a beach home in Galveston Island. The couple might help offset the cost of this excursion by renting their own home to temporary weekend guests visiting in the Houston area.
If the family returns to find the home in great condition, the typical scenario, everyone simply enjoys a great weekend. Yet what happens if the temporary house guests forget to turn off a faucet in the kitchen before leaving? Coming home to discover water pouring onto the kitchen floor and soaking carpet and drapes in an adjoining room might cause the homeowners to wish they’d made certain insurance would cover accidental damage in a temporary rental situation. The coverage provisions of individual policies may differ significantly when real estate owners purchase homeowners insurance in Houston.
Explore Insurance Coverage Diligently
Usually, short term property rentals do not result in damage to real estate. Most visitors treat their hosts’ premises with respect. Yet people who purchase homeowners insurance in Houston sometimes benefit by considering the worst case scenarios. If accidental damage does occur, the high cost of repairs may impose a great hardship on the household financially.
Checking the policy provisions of homeowners insurance in Houston carefully first and obtaining supplemental coverage if necessary remains a prudent strategy. With many popular tourist attraction in the Houston area, our community appeals to visitors from across the nation. Practically every month, the Houston area enjoys festivals, music concerts, seminars, conferences and other events that prompt people to visit this part of Texas in large numbers from other places for brief periods of time.
Millennial Homeowners And Homeowners Insurance in Houston
Some authorities especially caution millennial property owners to carefully investigate provisions of homeowners insurance in Houston before agreeing to sublet or rent out property on a short term basis. A survey cited by Property Casualty 360 reports that young people in the Millennial demographic frequently hold less insurance than other age groups.
Additionally, the technologically savvy generation that witnessed the growth of ride sharing services such as Uber and Lyft may accept new innovations more readily than other age groups. Millennials frequently embrace short-term real estate rental and home-sharing programs faster than customers in other demographics.
Both Millennials and older generations in Houston appreciate obtaining cost savings in homeowners insurance. They may appreciate discovering ways to enjoy financial benefits by visiting online money sites.