VACATION MODE : PROPERTY ON AIRBNB
WHAT HOMEOWNERS CLIENTS SHOULD KNOW ABOUT RENTING written by Caryn Mahoney , Swiss Re
Some people might think renting out a room in their house through a vacation rental site like Airbnb or Vrbo would be a great way to make some extra money . What they might not be thinking about is that a typical homeowners policy is not going to provide coverage for this exposure if it is considered a " business " as defined in the policy , which can exclude renting out the house on more than an occasional basis or making above a certain amount of income from the rental .
Some homeowners carriers may be willing to add an endorsement for this exposure , but even with an endorsement , theft of either the renter ’ s or the homeowner ’ s personal property may be excluded .
Some homeowners carriers may decide that they don ' t want this exposure at all , even going so far as to cancel the policy .
Then there are tenants in a home or condo who think that renting out a room or their entire rented property might be a way to make some extra money . Renters policies have a similar business pursuits exclusion and , depending on the terms of the lease and condo declarations , there are further potential issues .
Given the increase in people offering rooms or entire homes on vacation rental sites , it is not a bad idea to ask homeowners clients if they plan on renting out their home or any part of their home . Errors &
16 KANSAS INSURANCE AGENT & BROKER