Renting Out Property
Times are hard.
On the face of it, renting out your property is an easy way to supplement your income.
However, renting out property may have significant insurance complications, particularly regarding personal insurance policies.
Personal insurance policies, by their very nature, were designed to cover personal risk. They were not designed to cover commercial transactions, which is the domain of business insurance.
Invariably most personal insurance policies contain cover exclusions when property, whether it be abuilding or any other asset you own, is rented out to a third party.
In line with this, please disclose any situation where you rent out property to enable us to request insurers to quote on the commercial risk, where applicable, and/or advise your personal insurers, to ensure that full disclosure has been made.
Ona high level, the commercial risk consists of the insurable loss or damage to the asset, the legal liability to third parties that may arise and the possible loss of revenue, because of the loss or damage to the insured asset.