Danish homeowners considering renting out their properties this summer should carefully review their insurance policies to avoid potential financial pitfalls, according to Alm. Brand insurance company. Damage to the home or theft by tenants may not be fully covered under standard policies.

Jan Graversgaard, Director of Housing at Alm. Brand, advises both landlords and tenants to understand the insurance rules and rental terms beforehand. Contacting the insurance company for clarification is recommended to avoid confusion.

While house or holiday home insurance generally covers damage or burglary occurring while the property is rented out, contents insurance typically does not cover theft or damage caused by tenants. Renting out an apartment does not allow the purchase of “holiday rental” insurance.

Rental agencies may demand compensation from the homeowner for cancellations, even if the cancellation is due to damage beyond the owner’s control. This can result in significant costs not necessarily covered by insurance.

To rent out or rent with peace of mind, Alm. Brand recommends following these six tips:

• Create a lease and agree on a deposit.
• Clearly define the agreed terms in the lease.
• Verify your insurance coverage for tenant-caused damage to your home or belongings.
• Carefully examine the guarantees and insurance offered by the rental service, as they vary significantly.
• Inquire about prospective tenants, their travel plans, and insurance coverage.
• Secure valuables, including sentimental items, cash, jewelry, and art, as they may not be covered by contents insurance or rental services.