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Will My Homeowners’ Insurance Cover My Home if I Rent It Out Through AirBNB?

Homeowners’ insurance is purchased to protect you from various types of financial loss. Damage to your home and personal property, as well as liability payouts, can be devastating if you do not have homeowners’ insurance. This type of insurance is designed to protect you and your personal property. Depending on how detailed your policy is, it may stop with the coverage of your items. If you choose to use your home as a rental or an Airbnb property, you may need to look into purchasing additional coverage. Here’s a look into the types of policies you might need while renting your property.

Home Sharing

There are many different homeowners’ insurance policies that will cover your home if you choose to rent it out for short periods or if you rent it out once for a limited number of days. It will depend on what level of insurance you purchase. You will get less coverage with a basic policy than you would if you purchased a more comprehensive policy. If you have basic coverage, you may need to purchase a specific endorsement exclusively for short-term rentals. Renting your home one time for just a few days may be allowed, even under a basic policy.

Rental Properties

Any time you rent all or a portion of your home regularly, you are generating income as a business. If this is the case, your homeowners’ insurance policy will no longer provide you with sufficient coverage. In this situation, you will have to look into a business policy that will allow you to protect your investment. As an Airbnb property, most rentals will be for short periods. If you choose to rent your home for longer than three or four months, you will more than likely need to purchase a landlord policy. This type of policy covers all of the structures on the property, including the home.

Renting Someone’s Home

If you are renting someone’s home, you will need to have your own renter’s policy in place. If you choose to sublet a room (or the entire property), you will need to have your landlord’s permission and the approval of the company that has underwritten your renter’s policy. The person you sublet to must, in turn, have their own renter’s policy. In most cases, your renter’s policy will only cover your personal items.

When you are looking for ways to earn a little extra money, renting your home may be at the top of your list. If you are considering this as an option, you will want to discuss your options with our insurance experts at Abbate Insurance Associates, Inc. We can determine if your existing policy will take care of your property or if you will need to purchase additional coverage. It’s important to know the facts before you rent out your home. This type of mistake can be incredibly costly, and it’s up to you to protect yourself and your home.

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