Everything You Need To Know – Airbnb Liability Insurance
Are you thinking that it might be nice to rent out your property for a little extra cash? There are things you should consider when thinking about renting out your seasonal home to travelers. As times are changing with the world so are the needs when it comes to proper coverage in insurance.
- Insurance coverage under the homeowners’ policy will not always cover renters if the owner of the home rents the property out on a regular basis. The majority of insurance companies will not provide coverage for a home that is damaged if its tenants has occupied the residence for more than four weeks.
- Liability coverage is also something that an owner should be aware of because if anyone is injured on the property that is being rented, the owner could be held liable. If a renter sues the owner there is no coverage because the renter is a paying guest on the property. It is very important to tell your agent about the use of the property so proper coverage can be written.
- Renting out a home is a business. The regular homeowner’s policies do not cover risks such as Airbnb because a homeowners policy is written for owner-occupied homes and not for businesses or paying guests.
Normal homeowner’s policies will allow for a roommate or a border but that is completely different from operating a home rental business. The bottom line is if your life changes make sure you speak to your agent so you can make sure you are always properly covered. Not all policies are the same and coverage DOES matter.