Residential Daycare in rental property - insurance questions

[Guka Kagu]

I listed my property for rent, and a prospective tenant wants to rent the entire house and run a daycare for 8 kids from the basement. I currently have standard landlord insurance.

How does insurance work in this situation?

• Do I need to get commercial insurance as the landlord?

• Or is it enough if the tenant has daycare insurance and adds my rental property to her policy?

• She said she’s willing to pay extra rent and cover any damage caused by the kids. How much extra is reasonable to charge for this kind of setup?

Any advice or experience with similar situations would be appreciated!

[Jennie Ballard]

Along with what Jules said, does your basement meet local code for a living space? Generally you need an outside exit and escape windows in any bedrooms. Are the utilities like furnace separated off where a little kid can't touch?