Boarding and rooming houses have been around for centuries, providing affordable housing solutions for those who cannot afford to own or rent a house. Such establishments are also popular among travelers and students who need a place to stay for a short period.
However, managing a boarding or rooming house comes with its own set of risks, and it is essential to have the right insurance coverage to protect your investment.
Who Needs Boarding and Rooming House Insurance
If you own or operate a boarding or rooming house, you need insurance coverage to protect your investment and yourself from potential financial losses. Even if you have a small establishment with few tenants, accidents can happen, and you could be held liable for damages or injuries. Moreover, many states require boarding and rooming houses to have insurance coverage before they can legally operate.
Types of Boarding and Rooming House Insurance
There are several types of insurance coverage available for boarding and rooming houses, and it is essential to understand what each policy covers to choose the right one for your establishment.
Property insurance is designed to protect your building and its contents from damage or loss due to fire, theft, vandalism, or natural disasters. This policy can cover the cost of repairs, replacement, or rebuilding of your property.
Liability insurance covers any legal claims made against your boarding or rooming house by tenants or visitors who suffer an injury or property damage while on your premises. This policy can cover the cost of legal fees, medical bills, and compensation claims.
Business Interruption Insurance
Business interruption insurance is designed to cover the loss of income and operating expenses if your boarding or rooming house is temporarily closed due to damage or loss covered by your property insurance policy.
Workers’ Compensation Insurance
If you have employees working in your boarding or rooming house, you are required by law to have workers’ compensation insurance. This policy covers medical expenses and lost wages for employees who suffer an injury or illness while on the job.
How Much Does Boarding and Rooming House Insurance Cost?
The cost of boarding and rooming house insurance depends on several factors, including the type and amount of coverage you need, the location, size, and age of your establishment, and the number of tenants you have. Generally, you can expect to pay between $500 to $2000 per year for insurance coverage, depending on your specific circumstances.
Boarding and Rooming House Insurance Requirements
The requirements for boarding and rooming house insurance vary by state, city, and county. In some jurisdictions, you may be required to have a minimum amount of liability insurance coverage, while others may require you to have workers’ compensation insurance if you have employees. It is essential to check with your local government to determine what insurance coverage you need to operate your boarding or rooming house legally.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7021 Rooming And Boarding Houses
- NAICS CODE: 721310 Rooming and Boarding Houses, Dormitories, and Workers’ Camps
- Suggested Workers Compensation Code(s): 9052 Hotel – All Other Employees & Salespersons, Drivers, 9058 Hotel – Restaurant Employees
Boarding and Rooming House Insurance – Bottom Line
Boarding and rooming houses are an essential part of the housing market, providing affordable accommodations and temporary housing solutions for those in need. However, running such an establishment comes with risks.
Having the right insurance coverage to protect your investment and yourself from potential financial losses is crucial. By understanding the types of insurance available, who needs it, how much it costs, and the requirements for insurance coverage, you can make an informed decision and secure the right insurance coverage for your boarding or rooming house. Contact us and get more information today.