Short Term Rental Insurance
Think AirB&B and VRBO
” When it comes to short term rental insurance, please make sure you’re getting what you think you’re buying” – Attorney Evan Kaine
According to research, your biggest liability exposure is driving your car, the second-biggest liability exposure – having a short-term rental! Did we get your attention yet?
With the upraise of AB&B, more and more people are making money renting their properties short term. If this is you, then you need to read on. Since it is still relatively new to us in Florida, a lot of landlords and new real-estate investors are not fully aware of the fact that your regular homeowners or landlord policy will not cover your property when it comes to the short term rentals. They are simply not design for public use of the property (short term rental).
As a matter of fact, as soon as you list your property online as a short term rental, you have violated your homeowners/ landlord insurance contract. Both contracts specifically exclude “business pursuit” and have a clause that states if there is misrepresentation from the insured, then the insurance contract is invalid. It is a breach of contract!
In some instances, if you are sporadically renting your spare bathroom your homeowner’s insurance may cover you. However, if you convert your long term rental, for which you had landlord’s policy, into short term rental than most certainly you are not covered!
So, what is a solution? You need Commercial Business Policy designed only for short term rentals. This policy will cover all aspects of the short term rental including you as a property owner and your property.
Now, what about that AirB&B Insurance that is advertised on their website you may ask?! They call it Host Guaranty for property coverage and Host Protection for the liability coverage.
First, ” Host Guarantee Program isn’t insurance and doesn’t replace your homeowners or renters insurance”!
This above quote is directly from the AirB&B website.
Second, from our understanding and research, Host Protection ( liability insurance) AirB&B is named insured and not you! Also, they do not cover natural disasters such as hurricanes, fire or cover your property and liability while your property is not rented. Knowing all this, do you really want to “gamble” with your property by not insuring it properly?
Do you rent your property less than 30 days at a time?
if so you need a commercial business policy
Not every commercial property is created equally; you need the one specifically designed for short term rental!