Allowing others to stay in your home for their business or leisure travel can be an excellent way to make some extra money — possibly even helping to fund your own travel endeavors.
But you should also beware of the risks involved in such a venture. Unfortunately, it’s not all sunshine and roses, and there are some serious considerations you should make before proceeding, especially where insurance is concerned.
Read on to learn about the key insurance considerations you should make before deciding to list your house for business or leisure travelers.
Consider the Following Before You Rent Out Your Home
#1 – Insurance provided by sites like Airbnb isn’t comprehensive.
Although sites like Airbnb will proudly tout that their insurance will cover you when renting out your home, the coverage is actually limited. It only takes care of liability claims made against you. It does not cover damage that may be done to your building structure or your belongings.
#2 – In most cases, your homeowner’s insurance is not going to pick up the difference.
Homeowners insurance only covers you and your family in your home. Renting to strangers is not covered by most home insurance plans because this situation poses a slew of additional risks and likely would be considered “business use,” which is excluded or limited by almost every homeowner’s policy.
#3 – Generally speaking, an additional type of insurance like business or renters insurance will be necessary.
More often than not, to be completely safe when renting your home, you’ll need to purchase additional insurance. Business insurance is becoming increasingly required in states throughout the country.
In addition to business insurance, you may be required to have rental dwelling and/or landlords insurance. All plans and situations are different, however, so always speak with a qualified agent to know what type of insurance you need for sure.
#4 – There are other considerations to make as well.
Finally, consider a few other things that don’t have anything to do with insurance, but that might tip the scales if you’re still on the fence about renting out your home.
To begin with, you have your neighbors to think about. While it’s possible your neighbors won’t have a problem with you renting out your home, that’s not a given. Some may find the fact that you’re letting strangers into your neighborhood a problem — especially if they have small children.
Next, if you live in a home or condo association, it may be a moot point on whether or not you can rent out your home due to many home and condo associations prohibiting members from subletting. Be sure to check your association’s bylaws to be sure.
Finally, consider the work you’ll personally need to put into renting your home. Preparing your home for strangers will be a task in and of itself. It’s smart to put away all highly valuable items, and personal information that you want to keep private will definitely need to be moved to a safe location.
Once your renters have left, you’ll also need to clean up. Again, there are little to no repercussions for guests who may leave your home a complete mess; so it’s all up in the air whether the cleanup job will be relatively easy or an all-day project.
Get a Better Understanding of Your Options by Speaking With an Independent Insurance Agent
The best suggestion we have for you if you’re still considering renting out your home is to speak directly with your insurance agent. Only a professional who can look at your unique situation and insurance options can help you find an optimal course of action.
Ellis Insurance agents would be happy to discuss your options with you at your earliest convenience. Stop by today or give us a call to start now.