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Renting Your House or Room on Sharing Sites like AirBnb

By September 16, 2022October 3rd, 2022Home, Tips

BedroomHome-sharing sites like Airbnb and VRBO can be a great way to generate some much-needed income from an empty home or room. However, most standard homeowners insurance policies do not cover these types of short-term rentals. So whether you’re renting out your home once a year during your annual family vacation, or you have properties you own solely for this purpose, you’ll want to make sure you have the correct insurance coverage.

If you’re just renting out your home (or a spare room in your home) once or twice a year, you can ask your homeowners insurance agent about adding a short-term rental endorsement to your existing policy. If you will be renting your home for an extended period of time, more than about 30 days, you will likely need separate landlord insurance, as insurers view this as a more traditional long-term rental.

If you own properties specifically for the purpose of renting them out on AirBnb or VRBO, you will need to cover these with commercial property and liability insurance, as this constitutes business activity, not personal use. In this case, you’re a professional property manager, not a homeowner renting your own place for some extra cash.

Injury claimAirBnb and VRBO do offer up to $1 million in liability coverage for rentals booked through their sites, but that won’t necessarily cover everything that could happen, especially large claims. And it won’t be nearly enough if you’ve made these types of vacation rentals into a business with multiple properties. So it’s always best to check with your own insurance agent to make sure you have the coverage you need.

Don’t make the mistake of assuming your homeowners insurance policy will cover you if you rent out your home on AirBnb or VRBO, even if it’s only once or twice a year. Kamm Insurance Group can help advise you on what insurance would be best for your situation.

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