Short and Long Term Rental Insurance
Are you renting out your home? Maybe, just a room? It is important to know the difference and what it means when it comes to insurance.
When renting here are a few problems that may arise if you have a standard home owners policy.
- Renters exclusions – Most home owner policies exclude damage done by tenants. If you file a claim without the proper coverage the insurance company will deny a claim but may also cancel your insurance.
- Liability claim arising from injury or property damage to a renter.
- Loss of income – if the home/room you’re renting cannot be rented due to damage from an insured peril you will not receive any income. If this is insured properly you could be eligible to receive rental income.
It is also important to distinguish between various types of rental properties and what the impact would be on your coverage.
– Renting out a room / section of a home that you still occupy through a home sharing network (Airbnb, VRBO, and Flipkey to name a few).
Short term rental
– Renting out properties that you do not reside in through home sharing networks.
There is a difference in insurance with the home being the principal residence for the owner. In this case if the home is rented out less than 90 days a year, some insurers will allow an endorsement to their home owners policies that removes the renting exclusions. In the event the whole home is rented out, these may require specialty markets to secure coverage.
Furthermore, some municipalities require you to register your rental with them and provide certificate of insurance. To provide a certificate of insurance you need have commercial general liability, this is not available with a homeowner’s policy.
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