Question : An owner has a boarder their basement apartment is the basement considered rental property?
A friend owns and occupies his home and has a basement apartment- they are thinking of taking in a boarder. The question is if the boarder occupies this portion of their home, and there is a need to claim damages through the insurance is the boarder occupied basement considered rental property requiring commercial rental property insurance or may it be claimed on the homeowners insurance. Is there a website to look up this information? We live in the state of Illinois.
illinois homeowner insurance

Best answer:

Answer by M M T
In most states and with most insurance companies, he would be required to purchase commercial insurance on the dwelling, additional coverage on his personal contents.

Depending on the city/town/state laws about rental apartments, he may be subject to having the apartment inspected before it can be rented legally. The biggest issue is usually adequate escape routes should there be a fire. Egress windows are almost always required; not the little tiny typical basement windows. And a separate entrance probably.

Homeowners insurance does not typically offer the needed liability coverage to extend to a rental unit.

The best way to know is call a local insurance agent. He/she will have experience and might even be able to tell you about what inspections are needed. The insurance company may require a copy of those inspection reports also.