Who do you hosts use for fire insurance and host insurance (if a guess gets hurt, etc)?
I’ve decided that’s it’s too risky to become a host unless I can pay per day if and when a guest stays. Is there any pay-as-needed company that simply takes a cut for each day rented (if rented at all)? If I have to pay hundreds of dollars (or a grand?) for a one year policy then that’s a risk I’m not willing to take. Maybe if I was in a big tourist area it would be worth the risk but I just don’t know if I’d be hosting 10 days per year or 100 days per year in my area. Like most policies, my homeowner’s policy excludes business use. If I were to include business use then I would not only have to pay for that business policy add-on but I’d also lose my home/auto bundle discount with Farmer’s.
Sounds like you may be in the US, you need a policy that covers your hosting activities on an annual basis.
Be glad you can get a Business rider from Farmers. Here in Florida we only have 3 or 4 insurance companies that deal with us anyway – hurricanes, you know. None of those companies will even talk to us about AirBnb. We went from paying $1200 a year for standard homeowners insurance that covered wind, to $4500 a year for insurance that will cover home, renters, and wind!!
Unless you’re in the middle of Nowhere, Nebraska or the Utah blah lands south of SLC and north of the rimrock; I’m pretty sure you’ll be renting closer to 100 days a year. You don’t need to be in a “big tourist area” to get bookings.
Have you even looked at your area on Air to see how many other people have listings nearby?
There have, in the past, been posts that state that a company named Proper [I think] does offer insurance by the day.
Someone named Slice does as well.
I’m in Pacific Palisades, CA, a suburb of Los Angeles. In summer there are people who like to be right near the beach but I’m 2 miles up the hill from the beach. You can search Pacific Palisades on Air BnB. Nothing like Hollywood, where demand is crazy.
California is a year-round destination. 2 miles isn’t much – advertise your place “with ocean view” if that’s true.
Yes, I agree with you Glob, most of the homeowners insurance policies will not include the business coverage. You can look for some business insurance policy or renters insurance that will help you get the appropriate coverage. You can check here on online websites like the for insurance quotes that give you complete information about the price and the amount of coverage.
I had a heckuva time getting a home insurer to cover Airbnb in Ontario, Canada. I had a flood due to a frozen pipe two years earlier and that increased my liability.
However it is essential because most insurers will not cover you for property damage if they find out you are renting rooms.
They also do not allow cooking or people under 19, which (for me) turned out to be a blessing in disguise.