Renting out your New Jersey home long-term may require some special insurance coverage over and above that offered in a standard homeowners’ policy. You may need a landlord or dwelling policy, which may cost a little more than a standard homeowners policy, but renting your home out does come with extra risk. Additionally, your tenants may need a renters insurance policy to provide financial protection for their possessions.
Typically, a landlord is only responsible for the structure of the rental property, although you may also be responsible for any appliances, heating and air conditioning systems or lawnmowers that come with the property and are used by your tenants.
It may be wise to require your New Jersey tenants to show proof of renters insurance as part of the terms of your lease agreement. You may want to make it clear to your tenants what you are responsible for, and what they are responsible for, in the event of a covered peril like fire or theft. You may also want to look into specific policies to cover you if you want to rent out your property on a short-term basis. Landlord’s policies typically have options available that are appropriate to the rental situation, and are different to those on a homeowner’s policy. It can pay to ensure you have the right type of policy for your investment property.