SHORT TERM RENTAL INSURANCE
If you plan to rent out your home on a nightly, weekend or weekly basis – you should have a special type of policy for Short Term Rentals. Neither Homeowners Insurance nor Landlord Insurance covers vacation rental business activity at your property.
Frequently Asked Questions About Short Term Rental Insurance
What Is A Short Term Rental?
A property that is rented for less than 30 days at a time is typically considered short term. It is normally a residence in which the renter does not live on a permanent basis.
Why Doesn’t My Homeowners Policy Cover My Short Term Rental?
Short Term Rentals are considered a business activity. All homeowners policies carry a “business activity exclusion”. Accordingly, if your short term rental was covered by your homeowners policy and you had a claim, it could legally be denied.
Is My Short Term Rental Really a Business?
Yes. More and more cities like Austin, Santa Barbara, and Chicago are now requiring short term rental owners have a business license for this activity. For example, in February 2015, San Francisco passed a law requiring that all short term rental owners pay a 14% hotel tax and carry $500,000 in liability coverage.
How Do I Get Covered For Business Activity?
Your short term rental insurance is a business insurance policy. It covers your building(s), contents, business liability, and business income.
If I Insure My Short Term Rental As A Business, Can I Also Stay There?
Yes. There are no standard occupancy restrictions on a business policy. This means the property is insured while you stay there – or when friends, family or paying guests are there.
My Short Term Rental Is Also My Primary Residence, Can I Still Purchase The Policy?
Yes. If the short term rental home is also your primary residence, it might be a good idea to purchase additional personal liability coverage and loss-of-use coverage. This is very important if you do not carry a homeowners policy.
If I Have A Short Term Rental Policy, Do I Keep My Homeowners Or Landlord Policy In Place?
No. The short term rental policy is designed to fully replace the current coverage you have. You would cancel your current policy.
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