Coming or going, ensure your short-term is insured
If you plan to rent out your home, you should check that you have certainty of coverage to protect yourself and the property. Homeowners policies are not intended to cover business or commercial use of your home, which includes renting it out for a few nights. This requires extra coverage, either in a separate policy designed to protect your house when rented, or an endorsement added to your existing policy.
You need your own insurance protection, even if the service you use to rent out your home promotes backup coverage for anyone using its service. Typically, these policies will not reimburse for more than the actual cash value of property damaged by guests. For example, the policies will not pay for fire damage caused by electrical wiring. Additionally, covered property may exclude valuable items in your home, such as jewelry or artwork. Generally, liability coverage offered by these companies is limited to injury or damage caused by guests, not liability caused by you or your family.
Before you rent out your house, make sure you comply with applicable
New York state laws. In New York state, it is prohibited to promote the rental of a unit in a building that has three or more units, for fewer than 30 days. Additionally, New York City restricts short-term rentals further by requiring the homeowner to always be present at the property, limiting rentals to two guests, and prohibiting locks on individual rooms within a unit. Other municipalities also may restrict short-term rentals through local zoning laws, including towns on Long Island.
If you choose to rent a house or apartment for your upcoming travels, be aware that most homeowner policies cover your property and liability when you are traveling. However, other people’s property that’s in your care at the time of the loss is covered only for fire, smoke and explosion. Some of the property you own and take with you may need a floater policy to provide optimum protection. Additionally, Travel insurance can protect you from cancellations or health care expenses while traveling.
Want to rent your property out for travelers? Are you a traveler? Give our office a call today to make sure you are covered.