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This forum is so helpful, I thought I’d ask. I am renting out an entire home, in addition to using it myself on occasion. When I purchased it last September, the insurance agent said I did not need additional insurance to rent as an Airbnb, so I have my standard homeowner’s insurance. I don’t have an LLC to shield me from liability, and won’t be able to open one this year (tax-related). This is also an historic property – a former church, so there are stained glass windows and pressed tin walls from 1914. I am going to meet with my insurance agent shortly to discuss. Any advice?
Perhaps he is aware of a clause or rider on your existing policy that provides STR coverage?
Trust but verify. Air’s “million dollar host guarantee” is not coverage. Gosh forbid a guest causes serious damage one day, you will be very glad that you have extra STR insurance or know exactly how your current policy works in such an instance.
Do you have in writing from the agent that you don’t need STR coverage? You might consider getting an umbrella insurance in addition to your homeowners. To further protect yourself you should look into transferring the property into an LLC.
My sympathies - I hate navigating insurance. Unfortunately I can’t offer much help because I have a complicated mixed homeshare, STR suite and two LTR apartments. Lots of other good advice here. Consider getting more than one quote. A lot depends on your state or province. My state requires a certain level of insurance and I find that agents know very little about STR.
In some states in the US such as Massachusetts you can not purchase a homeowner policy and get a rider for the Airbnb portion. If you use this as your insurance and they learn you have an airbnb, not only will they deny any claims but they will cancel you.
I stopped doing an airbnb last March and at that time I was using Proper Insurance, the only commercial insurance that I could find. My regular homeowner policy at the time was $1200, Proper was $2000. Now that I’m back and entering the market again, Proper is the only provider available in MA and it’s now $3000. URGH! Real estate agents do not understand Airbnb insurance.
This thread reminded me to call my insurance company today to check on our coverage. I use USAA, which has been great for us over the years – and they insure STRs, although they do require an underwriting review of STR policies that slows it down by a day or two. Still, customer service is top-notch and they’ve never hassled me when I had to make a claim (although I haven’t had to make an STR-relatd claim, just stuff like hail damage).