Considering A Short Term Rental of Your Home?
Sharing services used for temporary rentals of property are all the rage these days, but insurance is not necessarily top of mind by would-be renters. Many assume their existing home or tenant’s insurance covers short term rental agreements, but this is most likely not the case. 1.2 million people around the world have turned to services such as Airbnb or HomeAway to offer temporary rentals, but haven’t considered possible negative outcomes if they haven’t taken steps to properly protect their property. Always assess risk versus reward: Does the property rental site screen potential renters? Are guests required to verify their identification? Is coverage provided in case something goes wrong? Does the service have a host guarantee or host protection insurance?
Have a discussion with your insurance broker about your plans, about what your current policy includes, and more importantly, what it doesn’t.