Do you own a short Term rental?
Then this article is for you.
Finally proper insurance to cover your rental. Our team at Brock can walk you through the options and help you choose the right coverage for your rental or rentals. Whether its the whole house, cabin, condo, town home or room we've got you covered. Not sure what needs to be covered or why. Contact our rental specialist John Brock today to protect the rental and yourself.
What is considered short-term renting? In the insurance world, a property that is rentedfor less than 30 days at a time is typically considered short-term. A property in which therenter does not reside/live at the dwelling.
Why does my homeowner's policy not cover my short-term rental? All homeowner'spolicies carry a "business activity exclusion". In other words, any claim involving a"business activity" could rightfully be denied.
Is my short-term rental really a business? Yes. More and more cities like Austin, SantaBarbara, and Chicago are now requiring short-term rental owners to carry and pay for abusiness license. Note: Starting Feb 2015 in San Francisco Airbnb Hosts will be required topay 14% hotel tax and carry $500,000 in liability coverage.
How do I get covered for business activity? You buy a business insurance policy. TheProper Insurance policy is a business policy. It covers your business property(rental home/contents), business liability, and the business income it generates.
If I insure my short-term rental as a business, can I also stay there? Yes. There are nostandard occupancy restrictions on a business policy. This means the property is insuredwhile you stay there, friends or family, and of course paying guests.
My short-term rental is also my primary residence, can I still purchase the ProperPolicy? Yes. If the short-term rental home is also your primary residence, Proper simplyadds $1,000,000 in personal liability and $50,000 in loss of use to relocate in the event theproperty is being rebuilt. This is very important if you do not carry a homeowner's policyelsewhere.
What if I also live at the short-term rental, can I still purchase the Properpolicy? Yes. You have the same business exposure. We see every scenarioimaginable. You live upstairs and short-term rent the downstairs. You live in the main home and rent out the guest house, etc.
If I have the Proper policy do I keep my homeowner's or landlord policy in place? No. TheProper policy is designed to fully replace the current coverage you have. You wouldcancel your current policy.
FAQ provided by Proper Insurance