2010 Rental Insurance Warnings

March 16 - With hundreds of thousands of visitors expecting to descend on South Africa during the 2010 World Cup soccer event, the idea of renting out your home for a bundle and heading off to a different part of the world to get away from the crowds is incredibly tempting.

However, homeowners are warned that before they give out their home to the first group interested, they should first ensure that they have taken all risk factors into account.

"2010 income opportunities being offered to ordinary South Africans has, of course, sparked great interest," said the director of insurance services at IntegriSure, Helen Szemerei, "but the need to conduct any form of related business responsibly cannot be over emphasized."

Some things to keep in mind include the change in status of home insurance once the establishment is rented out to tourists, even if a room is let while the owners are around.

According to IntegriSure, the moment a room is let, the status of the home turns to 'bed and breakfast facility' and all existing standard insurance policies are invalidated.  It is therefore of the utmost importance that homeowners contact their insurance companies and find out how to upgrade their policies, even temporarily.

Theft, fire or broken household equipment will not be covered by standard home insurance, nor will a guest's illness or damage to his or her personal property or injuries. In a worst case scenario, a homeowner may be faced with huge bills that will not be paid by their standard insurance if claims are made against them.

"Do some homework before making the decision to offer your home for accommodation during the 2010 soccer World Cup," warns Szemerei. "If you do decide to do so, ensure that you know exactly what this entails business wise and that you have the correct insurance cover in place."