We’ve previously covered the commercial insurance an Uber or Lyft driver needs. Today, we address the required commercial policy when an individual transforms their Lafayette, IN, home into an Airbnb or Vrbo. Home-sharing insurance coverage from Blevins Insurance Agency is a type of commercial insurance that protects the homeowner from financial loss from situations that Airbnb’s policy does not cover.
Rental Platforms and Their Insurance
Rental platforms like Airbnb and Vrbo provide participating landlords with limited insurance coverage. Although the policies carry large policy maximums, they don’t cover many typical situations. For instance, Airbnb provides its hosts with liability insurance to cover if a guest incurs injury on the property. It doesn’t cover damage to the host’s home, property, or personal property. That means a guest could damage a home, break the door down, and damage electronics, and the Airbnb coverage would not pay for it. Vrbo provides similar insurance, meaning that a host needs to purchase additional coverage in two forms: short-term rental property coverage and home-sharing insurance.
Short-term Rental Property Coverage
According to Forbes, landlord policies don’t cover short-term rentals. Short-term rental property does cover a host’s liability when guests stay in their home. However, short-term rental only provides liability coverage, so the landlord still needs property protection.
Home-sharing Insurance
Enter home-sharing insurance to save the day. This policy provides coverage to landlords offering short-term rentals, such as Airbnb, Vrbo, and bed-and-breakfast owners. According to Rental Trader, when guests stay in the home, the coverage kicks in, and these policies offer many options, including liability, property damage, and injury coverage. The property damage option covers damage to the host’s home and belongings. In some locations, a host can add loss of income coverage to a home-sharing insurance package. These two types of insurance policies include a "No Forced Entry Requirement" for a landlord to file a claim for theft or damage.
Contact Our Office Today
Call or email Blevins Insurance Agency today to schedule a commercial insurance review. If you host short-term renters in your Lafayette, IN, home, you’ll need short-term rental property coverage and home-sharing insurance to protect your financial investment.
