Leasing your home during the 2010 World Cup worth the risk?

According to SEEFF Properties, local homeowners can lease out their homes from anywhere between R750 to R19 000 a day to cater for the expected 450 000 soccer fans rushing to get their fix of the 2010 FIFA World Cup. Already having signed up thousands of homes, the property specialists are including private homes and guesthouses in their search for world-class accommodation for the World Cup.

If you`re planning on leasing your home during the world cup, Werner Slabbert of PSG Konsult suggests you inform your insurer. "Your current policy won`t change, but the terms and conditions of your home and contents insurance probably will."

While an excellent and easy way to earn yourself some disposable income, you may have to put all that cash back into your uninsured home for damages you can`t claim for, says Guy Eagle, spokesperson for http://www.Carandhomeinsurance.co.za. "If you claim for damages caused by a typically rowdy soccer fan without having told your insurance provider that you`re leasing your home, they can reject the claim."

MATCH Services AG, the professional services company appointed by FIFA to provide accommodation for the World Cup, is focusing only on accommodation graded by the Tourism Grading Council of South Africa, opening up what many refer to as a lucrative opportunity for local realtors and homeowners.

It is imperative, though, that homeowners don`t lease on their own, but go through an approved leasing agent, such as Pam Golding or Jawitz, which have set up special 2010 rental accommodation services. "Even then, homeowners must see that the contract they have with tenants is as comprehensive as possible," advises Slabbert. "We also recommend visiting the property at least once a week."

"Don`t take the call centre agent`s word for it either," adds Eagle. "Make sure you get it in writing that you are covered for leasing your home, and check the exclusions of your updated policy to determine how much risk you`re taking on."

Homeowners may have to pay more on your premiums, but this, according to Slabbert, will depend more on certain factors such as the policy owners` claims history than the tenant. Your home contents insurance, though, may change more drastically, being subject to exclusions and conditions.

"Theft exclusions, like any leased home, will likely be added to your contents insurance," says Eagle. "If the tenant steals some of your contents (usually indicated by the lack of forced entry), that`s a risk you`re going to have to take on yourself, as filing charges for someone who has left the country may not be effective."

It is in the homeowner`s best interest to take out landlord insurance as well, continues Slabbert. Such landlord or tenants insurance covers damages caused by tenants as well as tenants who default on payments and any legal fees that may be entered into while recovering payment.

Whatever type of insurance you decide, it`s always a good idea to compare policies. "Look at both premium and extent of the cover when choosing home and contents insurance," advises Eagle. "Crucial cover is often sacrificed for lower premiums."