Any experience with USAA for home insurance/STR insurance?

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Hello, I’ve been hosting for a few months now and want to make sure all my bases are covered with my insurance. I have USAA insurance for my home, auto, and umbrella. I live in my home and rent out one of my rooms on AirBnB (soon to be two rooms). Before I started the USAA policy I called them and asked if it would be a problem if I rented out a room as a short-term rental. They said no problem, and I asked if it matters what site I get the renter from (I didn’t specifically say AirBnB), and the rep told me it doesn’t matter. I called back the next week and asked the same questions and was given the same answers. One of the reps even mentioned that the loss of use coverage will replace any lost rental income while I’m out of the house during repairs. Based on the information from the two reps, I set up policies with USAA.

I’ve been doing more reading on these forums and have seen several older posts by konacoconutz saying USAA wouldn’t cover short-term rentals and now I wonder if I was given wrong information by 2 reps. I trusted information given to me, but I don’t have anything in writing, and if I call back now, I’m concerned they’ll drop me or not renew my policy if they actually don’t cover STR. I can’t afford one of the supplemental insurance policies like Slice, as it will eliminate enough profits that it wouldn’t really be worth it to host anymore.

Does anyone have experience with USAA, and if so, can you confirm that they cover short term rentals or not?

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I’ve called and asked them twice if I need additional coverage for my AirBnB, and both times they said no, as long as I live on the property.

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Weird because when I asked them they practically hung up on me. They don’t insure Hawaii anyway so maybe the point was moot.

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I have been a USAA member for, lemme do the math…37 years. Used to be that you had to be military or a descendant there of. I fit the latter. They are now letting more people in. To your question, please do follow up with what you find out. I can tell you I have had many experiences with USAA claims or just customer service in general, and have no complaints. And more importantly? No mis-information. Checking/savings/auto/home insurance bundle.They are IMO amazing. And cheap. I would trust what they say. No ATM charges for domestic or international travel (whhhhhaaat?) they refund them. So many perks.

It’s on my list to-do as far as a new host to make sure I’m covered with my homeowners insurance. Please follow up with your post or PM me with any caveats or good news you find out. I will do the same. Again, I always believe what they tell me and no issues. They don’t outsource their calls either.

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Great, Xena, sounds like similar information to what I was given. So you just have a regular homeowners policy with them? Did you get anything in writing?

Do you have an umbrella policy? I have a standard umbrella with them —when they asked the list of screening questions for the umbrella I said “no” to the question about whether I use my house for commercial activities—I wasn’t doing AirBnB at the time, and they didn’t tell me short term rentals would be an exclusion for the umbrella either.

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Yes, I do have a regular homeowners policy. I don’t have anything in writing. I’ve banked with USAA since I was in high school and always had excellent customer service. I don’t have an umbrella policy with USAA. I’d like one with them to keep it all with the excellent USAA, but their policy excludes STRs according to their website. I haven’t called to ask if my situation is an exception.

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That’s interesting. Do you have a whole house STR or just rent room(s)? I’ll be calling them soon to make sure I’m covered. I just rent a room/bath in my home which I live in. Guests do have access to many common areas though. I know I know, I will call myself, but am anxious to hear what others conversations with them have been like in regards to STR.

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I rent my basement apartment in the house I live in.

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i had USAA when i was renting long-term( yearly tenants). they told me that they do not cover short-term rentals and recommended 2 different affiliate insurance companies. i do not live at the property. i called them around October of last year (2017). hope this helps.

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I looked at my homeowner’s insurance documents and can’t find anything that specifically prohibits short term rentals. In fact, the language referring to rentals and business usage is not clear to me—maybe someone can help clarify whether it looks like rentals are covered? I’m concerned that so many people seem to be getting different information from USAA, and wonder if it is related to where the property is located, or whether it is just a room in a primary residence vs the whole house for rent, or if some representatives are just giving incorrect information.

Under the definitions:
"Business"means any full or part-time activity arising out of or related to any trade, profession or occupation of any “insured”.

In my interpretation, AirBnB would not fall under this category as it is not my occupation, I’m just renting a room in my house while I work full time in my profession.

Regarding the exclusions below, it seems that “business” activities are excluded (which by the definition above, AirBnB doesn’t seem like a business activity), but rentals are allowed if they are used as my residence.

“Personal liability and Medical payments to others do not apply to “bodily injury” or “property damage:

Arising out of or in connection with a “business” engaged in by any “insured.” This exclusion applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the “business”.

Arising out of the rental or holding for rental of any part of any premises by any “insured”. This exclusion does not apply to the rental or holding for rental of any “insured location”.
(a) On an occasional basis if used only as a residence;
(b) In part for use only as a residence, unless a single family unit is intended for use by the occupying family to lodge more than two roomers or boarders”

There’s also a section regarding rental losses, but doesn’t specifically define what rentals qualify:
"FairRentalValue. If a loss covered under Section I - LOSSES WE COVER makes that part of the “residencepremises"rented to others or held for rental by you uninhabitable, we cover the fair rental value of that part of the “residencepremises” rented to others or held for rental by you less any expenses that do not continue while the premises is uninhabitable.
Payment will be for the shortest time required to repair or replace that part of the premises rented or held for rental, but not to exceed 12 months.”

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My insurance agent made it pretty clear, you are charging a fee for a service and making money - you are running a busines!

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