Thinking of renting a room or part of your home when an event comes into town? What will your homeowner's insurer say about that? What if the people you rent to cause unintentional damage? What vetting process should you engage in?

One major home insurance carrier states that if an insured rents a portion of their home out for an event in the area, a great example is the Pope’s visit to Philadelphia, they would have Section II liability coverage for this arrangement. This section denotes that coverage is provided if the insured occasionally rents part of their primary residence (note occasionally).

Keep in mind if you do submit a claim your rates might increase, as such it is important to engage in a vetting process for potential renters. Who are they? Are they homeowners? Are they accountable for damage that they might cause? 

Start with personal and professional references, and collect a security/damages deposit. Further protect yourself by requesting a Certificate of Insurance showing that they have evidence of home or tenant insurance, required you are named as an additional insured. Most insurers agree that personal liability on a current policy goes with the policy holder everywhere in the world they might be. By being named as an additional insured you would have liability protection under the guest’s insurance policy in the event you are enjoined in a lawsuit action relating to the renters actions.

Always double check with your agent to ensure you are insured.