December 1, 2017
The kids have moved out and you have a spare bedroom. Why not rent it out for some extra money? Before you let that first guest through the door, make sure that you purchase home sharing insurance or short term rental insurance, to protect you and your home from any sort of risk, liability or building claims.
When you rent out your home or part of your home, you have to have to make sure you have the correct type of insurance. If you decide to do a short term rental which is less than a 12 month lease, to multiple people throughout the year, you will have make sure you have Home-Sharing or Short Term Rental insurance.
Insurance companies view short term rentals as higher risks because each new tenant increases the chances of getting a bad tentnat and as a result, a claim. If you use a home rental network like AirBnB or HomeAway, you don’t typically interact with the potential client, no background checks are done and you don’t really know if they profile that they enter online is true.
The home sharing networks offers insurance but it is typically very limited and may only cover liability insurance. This is where you need to talk to your insurance broker, to make sure you have sufficient and the correct insurance for your needs.
Home sharing insurance typically covers you for the following:
- loss or damage to buildings and personal property
- intentional acts, criminal acts, or failure to act by a guest
- loss or damage to a guest’s property up to a certain amount
- loss of rental income (fair rental value)
- liability arising out of the short-term rental
Call us today, to make sure you get the correct coverage.
Ready to rents? Here are some tips for renting your home on a home sharing network.