Renting your home to others is becoming more popular and with Airbnb going public there seems to be more awareness of the income potential. The problem is that many people don’t realize that a standard home insurance policy has limitations for any business activity. And, renting your home to others is considered a business activity.
Policy language differs between insurance companies but most policies will give back coverage if the rental activity is minimal. One of the insurance companies we represent gives back some rental liability coverage for “occasional use” but “occasional use” is not defined. Another carrier affords coverage if the annual number of days rented is less than 30.
Some companies will offer an endorsement to the policy to pick up this coverage and should you turn your home into a full time rental there are other coverage forms available to meet your needs.
As always – reach out to me with any questions.