Are you considering using a site like Airbnb to rent out your home? You may have figured, “Other people do it. Why not me?” While in some situations, this justification may be reasonable, it doesn’t necessarily apply here.
Unfortunately, there are numerous serious concerns to consider if you are thinking about this venture. In the following article, we’ll briefly explain each of these concerns and make recommendations on next steps should you continue with your plans.
Concerns to Consider When Renting Your Home on Short-Term Hosting Sites
1. Protection of your property and gaps in insurance coverage
First, understand that liability insurance policies from sites like Airbnb are not comprehensive.
If you read the fine print, you’ll note that your property is not covered. Most of the time, the hosting business’ insurance covers only liability issues. For instance, if someone hurt themselves in your home because they slipped on some ice or in the bathroom on some water, you’d likely be covered.
On the other hand, issues like property damage are left for you to deal with, and this even includes intentional damage done to appliances, furniture, and other belongings in your home. If a renter were to leave holes in your walls and steal your television and sound system, there’s nothing Airbnb insurance would do to protect you.
2. The purchase of additional insurance and becoming a landlord
Will homeowners insurance pick up the pieces left behind by host site insurance? It’s not likely.
While you may speak with your insurance agent about renting your home out (and you should speak with them!), it’s unlikely your current home insurance plan will cover you. Instead, you’ll probably be told to purchase additional insurance (like a rider or business insurance), or in some cases, you’ll need landlord insurance.
Landlord insurance especially can be costly and comes with some other legal complications if you plan to pursue the role.
3. Dealing with the mess renters leave behind
Again, Airbnb insurance and other hosting platforms’ insurance won’t cover your property. This means that if a renter leaves a huge mess, it’s up to you to deal with it. If you rent your home three, four, or more times in a month, this means a lot of clean up.
For this reason, some homeowners will hire out the cleaning, but at this point, you have to weigh the costs and benefits of this venture to ensure you’ll be making a profit.
4. Homeowners association bylaws and neighbor concerns
Finally, if you live in a homeowners association, you must check with the association’s bylaws to make sure that you can sublet or rent out your home. Many bylaws prohibit this.
Not part of a condo or homeowners association? Consider your neighbors. You’ll be putting them into a difficult position by allowing complete strangers to filter in and out of their neighborhood by way of your home.
Speak With an Insurance Agent at Insurance Innovations, Inc Today
Above all else, when it comes to renting out your own property through a site like Airbnb or HomeAway, you need to talk with your insurance agent. You may read through these concerns and still want to move forward, but if you do, your insurance agency needs to know. Furthermore, it’s wise to adjust your current policy or purchase additional coverage at your agent’s recommendations to ensure you’re not leaving gaps in coverage.
At Insurance Innovations, Inc, one of our knowledgeable agents would be happy to sit down with you at any time to discuss your current coverage and options where home renting is concerned.