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I just saw an ad on Facebook for Comet http://www.comethome.com They are advertising liability and loss of income insurance for short-term rentals. The innovation seems to be that it is month-to-month and the premium depends on the occupancy. The example quotes seem reasonable too.
Has anyone tried them? Have you worked through a claim? What was your experience? It sounds a little bit too good to be true, so I would love to hear some actual experiences.
Me too!!! Thanks to this forum I have heard horror stories about State Farm and others just canceling you for just breathing the word AIR. I will look into them! I love the changing premium due to occupancy… Why pay during the summer when this area goes dead?
I actually saw this post when googling for Comet’s website (I never remember it), so I thought I’d jump in here. I’ve been using Comet since the beginning of the year, and it’s been working out really great for me. I haven’t had to make a claim yet (thank the lord!), and from my 5 months of working with them, they’ve been great!
Their customer service has been superb from the beginning, and would always reply to my emails within a few hours. Turning the insurance on/off is easy too - I just email my Comet agent “Turn on my insurance”(literally), and I get back a reply within a few hours telling me my insurance has been turned on for the month (same with turning it off).
Air states in their FAQs that you should not look at their coverages as a replacement for standard homeowners. I have answered this question at least three times in the past 24 hours so it is clear that hosts don’t realize this is the case.
Dear K and others,
I may not have made myself clear. I have a regular homeowners policy as the owner of my home, but I’m wondering if I need an additional policy for liability to cover potential guests’ injuries.
The answer is YES. Because if your homeowners insurance company finds out you are doing Air, they WILL cancel you. You will not only not be covered if there is an incident, they will cancel you. (Also, members here have told us their companies canceled them immediately when they called to enquire about doing Air, which they consider to be a commercial activity, and therefore not covered.)
Air’s coverage is a back up, and should not be substituted for your regular insurance. So …what you, and all of us hosting need to do, is purchase short term rental insurance from a company like Comet, as a supplement to our regular homeowners insurance. Don’t leave it to chance!
I believe Kona is right. Homeowners doesn’t cover you for running a short-term guest hosting service out of your home. It would be like if you decided to sell cookies out of your home. If one of your workers or customers had an accident, it wouldn’t be covered by your homeowners because it was a business activity, not a normal residential occupancy.
I’m sorry to be a pest, but I’m still not sure. If I have a homeowners policy AND Airbnb offers $1M indemnity for guests’ claims, do I still need anything else? Has anyone ever submitted an indemnification claim to Airbnb and did they cover it?
I would also be interested to hear about anyone who made a claim on this and whether the claiming process is as much of a headache as the damage claim one is.
I would never discuss it with your current homeowners’ insurance. They have cancelled hosts for even ASKING! I would say if you have the homeowners’ insurance, plus this and plus comet you can consider yourself well covered.
I have two properties on Airbnb, and Flipkey. I just signed up with Comet after reading horror stories about hosts getting cancelled by their regular ins co when they tried to make a claim. Also read on Airbnb forum that thier “Million Dollar” host protection policy is more of a marketing tool, and they don’t really make it easy to put in a claim. It was super easy to sign up online, and I think the premium is pretty reasonable, bearing in mind what could happen without any coverage. I rent both of my properties 12 months out of the year so I won’t be using the “on/off” feature. Would be great, though, if you have a need for it.
Rental Periods of one year or more. The insurance does not apply to any loss resulting from rental periods of one year or more.
Americans with Disability Act Violations. The insurance does not apply to bodily injury resulting from a violation of the Americans with Disabilities Act or any similar state, local or common law.
Fire or Life Safety Violations. The insurance does not apply to bodily injury resulting from any applicable federal, state, local, or common law regulating fire or life safety.
Bed Bugs. The insurance does not apply to any bodily injury or property damage resulting from bed bugs.
Assault and Battery. The insurance does not apply to any bodily injury or property damage resulting from any assault or battery.
Defamation of Character. The insurance does not apply to bodily injury resulting from defamation of character.
Focus on #2: Does this mean if your property is not up to code with ADA, then coverage could be void? Is your rental wheel chair accessible?
Focus on #3: Does this mean if your property is not up to code with fire and safety requirements like a hotel, then coverage is void? Does your rental have fire extinguishers, and two means of egress from a second floor?
Focus on #5: Does this mean if your guest gets rowdy and assaults your neighbor, and your neighbor sues you, then coverage is void?
I’ve never seen these exclusions on a commercial general liability policy before. Plus, it’s expensive. Replace your current homeowner’s or condo policy with a true commercial policy. Proper Insurance has none of the above exclusions, and is $250 annually for a two bedroom property.
Depending on your SF coverage they do cover ‘occasional’ short rentals, with not specific period for ‘occasional’ defined. We actually got loss of income (for cancelled ABB reservations) last year when we had a leak from the unit above ours. I spoke to our agent yesterday about our primary residence, and she confirmed we are covered for ‘occasional’. We are not covered at all on our 2nd home, bc we rent it more than ‘occasionally’. I need to follow up with Comet, about this.