What You Need To Know About Home-Sharing & Your Insurance

There are about four million homeowners that are part of the home-sharing community of Airbnb. If you are one of these homeowners, renting your home or other property for any length of time, you need to make sure you are protected properly. When you talk to an independent insurance agent, like R.C. Keller & Company, we will help you find the right short-term rental insurance coverage to protect your property from disrespectful or accident-prone guests.

What Is Short-Term Rental Insurance?

Short-term rental insurance is a specialty coverage or add-on to your homeowners insurance policy to protect you, your renters and each party’s personal belongings from damage due to a number of causes. This kind of insurance only applies if you will be renting out a property for a term (most insurers are less than six months) that your insurance carrier considers to fall within a category.

If you are renting out your property for six months or more, you will need a landlord insurance coverage. If you plan to turn your property into a short-term rental on a regular basis, this would be considered a business and you will need a different insurance policy entirely like hotel insurance.

Short-Term Rental Insurance Covers

When you add short-term rental coverage onto your homeowners policy the following will be covered:

  • Your Belongings: This coverage includes property damage to, or theft of your personal belongings stored on the premises by your renters.
  • Liability: This coverage includes reimbursement for legal costs if you get sued by your renters for claims of bodily injury or personal property damage while staying at your home.
  • Dwelling Damage: This coverage includes property damage to the dwelling or structure of your home or other rented property caused by fire, vandalism, etc.

These are just the basic coverages provided by many short-term rental endorsements. An independent insurance agent can help you add the extra coverage that you need.

Is Short-Term Rental Insurance Mandatory?

Short-term rental insurance is not mandatory by law, but it is crucial coverage if you will be allowing renters to stay on your property. Without the right extra insurance coverage or endorsement, you could be stuck paying repair or replacement costs out of your own pocket if your guests cause damage. You could also find yourself on the wrong side of a lawsuit filed against you by your guests if they claim to have been harmed by/on your property.

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Does Homeowners Insurance Cover Short-Term Rentals?

Most insurance companies consider renting out a home or part of it to paying guests to be a business. Homeowners insurance policies most likely will not cover property damage or liabilities arising from short-term renting situations.

Standard homeowners policies usually exclude or provide limited coverage for businesses that homeowners operating out of their homes. Although some peer-to-peer home sharing websites offer liability coverage for hosts and landlords, but having short-term rental insurance is important to protect you from fires, theft, guest injuries, plumbing breaks and more.

Why Do You Need Short-Term Rental Insurance?

When you choose to rent out all or part of your property to paying guests, using short-term rental coverage to protect yourself in a myriad of ways. Some examples of short-term rental insurance in action are below.

  • Reimbursement for renter-caused property damage: Whether it is accidental or malicious vandalism, this kind of insurance can cover costs of property damage caused by your renters.
  • Reimbursement for theft by renters: If your renters steal your belongings, other property or cash, short-term rental insurance can help recover the cost.
  • Reimbursement for bed bugs brought by renters: If you have the unfortunate experience of renting to folks who bring bed bugs into your home or other property, luckily the cost of this treatment will be covered by short-term rental insurance.
  • Reimbursement for injuries caused to the renters by your pet: In case your renters get injured or have their belongings damaged by a pet on your property, fortunately short-term rental coverage often includes pet liability.

Why Should Work With An Independent Insurance Agent?

Well because they are awesome for one, but in turn, an independent insurance agency like R.C. Keller & Company simplify the process by shopping and comparing insurance quotes for you. Not only that, but they will also cut the jargon and clarify the fine print, so you know exactly what you are getting.

We use multiple insurance companies to find the best short-term rental coverage, accessibility and competitive pricing while working for you. Give us a call today at 847-907-4520.

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