I am looking to get renters insurance. However, the house that I will be doing my Air BNB is not a house I own. My landlord is completely ok with me doing short term rentals in the home.
I know alot of people get policies through their home owners insurance, obviously that is not an option for me. Looking for advice on what to do??
You’ll need to have your landlord involved.
Insurance protects a named party who owns the asset. You can get a “renter’s insurance” which protects the contents of a place you rent, but the landlord typically carries the policy that protects the physical building and personal liability for the people inside.
You’d be smart to talk to a lawyer. You may find it most advantageous to set up an LLC or other framework whereby you formally split costs and revenue with the property owner. They’re a fool if they’re letting you use their property in this way without such safeguards.
You should make sure the landlord goes over his/her insurance policy first to ensure STR is not prohibited and then get agreement from the landlord in writing that allows you to do STR.
Just have a look on Google. @Jaima_McReynolds You dont have to be a landlord to get a home insurance for STR. And you need to look at liability insurance You may also need to pay the addition for landlord’s property insurance.
Look at a business owner policy through State Farm
Not trying to be pedantic, but “renter’s insurance” isn’t want you are looking for. Renter’s insurance is what you get when you rent an apartment or house that covers your personal property inside of a home you are renting from a landlord.
What you are looking for is called an “Innkeeper’s Policy” by my insurer. Different insurers have different terms for these policies but it’s a business liability policy you (and/or your landlord) need. I would imagine it would be a policy you own but name the property owner as an additional insured. However, you would need to be very clear and specific with the underwriting to make sure you are buying appropriate coverage.
And try calling your local agent(s) and talk to them vs. just going online and buying a policy. I saved a ton of money this way vs. buying from Proper online.
@Lonestar is right - it’s not renters’ insurance that you need.
It’s going to be much less complicated if the landlord gets the STR insurance. If a guest is injured in the rental, they are going to try to sue the landlord not you (or at least want medical expenses reimbursed). If a guest damages a fitting in the property, the insurance company will want to pay the landlord the price of the repair. If carelessness on the part of the guest means that the property burns down … well, you get the idea.
The landlord could possibly be liable for getting the licenses required to run an STR in your area and it will make everything a lot easier if the TOT and any other taxes are paid in the landlord’s name. You see, if you decide to move on but he wants to retain the STR business, these things should be registered to the landlord.
It’s actually too complex an issue for you to rely on the advice of people at a forum. After all, we don’t know what sort of deal you have or where you’re located. I’d take @Allison_H’s advice and set this up via a lawyer. You and the landlord could also benefit from a meeting with a financial specialist too.
Totally agree. I’m thinking it’s the landlord that’s naive in saying that he/she is OK with the OP doing short term rentals in the home.