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I keep seeing posts of people getting robbed and property damaged. AirBnB only steps up once in a while, so why do more host not have separate insurance?
If you think your standard homeowners or rental insurance policy covers you in the event of a loss, you could be in for a real shock. I’m not just talking about the little stuff either. Think fire, injury or death…
My homeowner’s insurance company told me they likely would not cover me should something happen in or because of my rental space.
Is renting out a spare bedroom for extra or even significant income worth loosing your entire house and/or other assets?
I strongly urge you to seek out a separate insurance policy. Depending on your property, it may be cheaper than you think. Before I took my first reservation I had separate coverage in place. I urge you to do the same.
Definitely. A good umbrella policy may be sufficient. And an umbrella policy with an existing insurance company often isn’t much more because you get discounts on all your policies for going multi-policy. This is something my husband and I are adding this winter before we go into busy season again.
There are a ton of discussions here on the subject of insurance and who does/does/not supply insurance that will cover your Air property, even if it’s your spare bedroom. Start by asking whoever your agent is now (not your insurer , like GEICO, your agent Billy Bob Smith, who handles all kinds of insurance).
When we went looking back in August, my partner’s insurance company told her they would not renew her policy, even for the main house, in September. We had 4 weeks to scramble and find something. At the time she was paying about $1200 a year for basic homeowners policy here in Florida, with hurricane coverage. The BEST (of three) offers we could find was $4000 including hurricane. There was one company that wanted to charge $5000 just for the hurricane coverage!!!
Most places in the US you CANNOT be without insurance, or your bank will foreclose on you. Just like that. Unless you own your home outright – which few do.
You will need a business insurance policy because that’s what you have - yay! A business. I like my guy very much - but almost every agent in the US - if not EVERY agent - is going to quote you with the same company. You will be non-standard for 3 years so will be insured by Lloyd’s of London. My policy went from about $1,000 a year to $1,700 a year - not such a bad jump - it’s the cdb - cost of doing business.
Find an agent you like. I had one, but when I called at a prescheduled time, she didn’t realize that my time zone (EST) would be ahead of hers (PST). I didn’t think I wanted to deal with someone who would be so confused about time zones - so I look further and found an agent I like. Cami Dennis, ISU –TRC Insurance, (425) 366-8244 direct phone & fax.
I believe that AirBnB has a backup insurance policy that kicks in if a host is not covered by insurance. But you are right that renting a room in your house makes it a commercial business and most companies, maybe all, will not insure you.
Business insurance will cost much more. I considered having guests sign a waiver or indemnify us if they are injured on the premises. But you can’t do that before they actually arrive. I havent done it yet. I havent had any problems with guests, with one exception that didnt involve any accident or injury, just a lying guest.