When Homeowner Coverage Isn’t Enough

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The short-term rental trend has left homeowners and insurers in a unique position, since you’re only renting for short periods of time, you may not see the necessity for extra coverage that’s often carried by landlords.

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A typical homeowner’s policy provides coverage for structural damage, replacement of lost or stolen property, and personal liability.  But what most homeowners don’t know is that that same policy might not apply when you rent out your home for short periods of time.

The emergence of the short-term rental trend has left homeowners and insurers in a precarious position.  Since you’re only renting for short periods of time, you may not see the necessity for extra coverage that’s often carried by landlords.  Your insurance company, however, sees an increase in your liability and property risks. 

Imagine the following scenario:  you rent out your home for two weeks to a family friend.  While staying at your premises, that individual trips on a loose floor board, falls, and is badly injured.  While you would never have imagined this person taking legal action, you suddenly find yourself in the middle of a liability lawsuit, being sued for that person’s medical costs…and your insurance provider won’t cover the expenses because they have deemed your short-term rental as a business.

So, where does that leave you?  The answer is Short-Term Coverage that can be added to your pre-existing homeowner’s policy.  This package provides additional coverage to protect you against theft, fraud, liability, and accidents while temporary tenants are staying at your premises.  So before you build a profile for your home on that “rooms-for-rent” website, be sure you’re protected.

John DiStefano
Personal Lines Territory Manager