Short Term Rental Insurance

[Maria-Lurdes0]

Hey everyone, I saw a post on another forum (airbnbhostforum) about this insurance company, and I think it's worth a look:  Comet Home.

One important thing that all hosts must know is that your own home owners insurance doesn't cover you if you're doing commercial activity (such as Airbnb).  In fact, all it takes is for your to call your insurance company to ASK about additional coverage, and they'll cancel your policy.   This happened to a friend of mine who innocently called her insurance company to ask a question and bam - cancelled policy.    

THere are a few more insurance companies offering products for us now, but this one is interesting as you can pay monthly, and turn it for for the slow winter months when you don't have guests.

[David126]

Just a couple of top up covers, but you still need your main coverage which seems to be the issue.

[Zachary3]

I'm a tad confused. Is Comet, or any "short term rental insurance provider," offering a full BOP? Or is this just a supplimental GCL to have on the side to cover any damages, medical expenses, loss of earnings? 

[Maria-Lurdes0]

what are the acronyms?  I have no idea what BOP or GCL mean....

[Linda102]

I am a new host in West Seattle . So far thrilled with the response, but a  very dark cloud is looming in the form of loss of my homeowners  coverage . Does " Comet Home" provide comprehensive coverage with a rental rider ?

What is everyone doing about this problem? My carrier told me they will be canceling and  If I had not told them, my policy wouldhave been void anyway.  ( Most policies forbid a home business)

Linda 

[David126]

Comet just provides a couple of add on coverages, you still need your main policy.

[Cheryl33]

I also have State Farm and got an additional umbrella policy to cover me in case of any claims.  Then they cancelled my policy because while my house is rented on Airbnb, I am living in another state.  After 2 weeks of phone calls, I got it re-instated by explaining that my home was considered my permanent address.  During those 2 weeks, I started doing a little research and called a friend of mine who is an insurance agent.  She confirmed that her company (not State Farm) was not writing any policies for Airbnb rentals, but suggested I contact CBiz.  I called them and found out that this is their market niche, and although much more expensive than my umbrella policy, I am planning to go with them.  I don't want to find out the hard way in the event something happens that I'm not covered.   You can pay monthly too!

In case anyone else is interested, their phone number is 888-883-5696 and the website is cbizspecialtyinsurance.com

[Marj2]

Thanks! Is CBiz still working out? I'm in NYC and may look into this. 

[Stella107]

Hi Marj, any update on your insurance in NYC? Currently i am looking for one and it's not an easy process.  Not many insurance company offer coverage to short term rental property in NYC.

[Jude7]

I followed the links to both sites  mentioned as I was curious about liability coverage.  I had been operating under the belief that Airbnb covered hosts for up to 1 million dollars in liability coverage.  When visiting the Comet website, their own website mentions the Airbnb coverage:

DOESN’T THE HOMESHARING SITE I USE COVER ME?

Not necessarily and even when they do, often the coverage is not clear. Airbnb is the only company that includes liability insurance for hosts, but their coverage only applies to homesharing done through their site. Homesharing Liability Insurance is the only way to get coverage that follows you, no matter how you short-term rent your home.

I'm definitely interested in being properly covered.  Would anyone comment on the need for additional commercial coverage, versus being covered through Airbnb?

Many thanks!

Jude

[Constance8]

My understanding is alot of home ownwers will not cover your bulidig/home owner if you are running airbnb in your personal property .I rent a room in my home and found out my INS is Null and void  because I have airbnb 3 mos out of the year...because Gieco/travlers consider it a high trafic risk and because Airbnb advertizes for me and pays me it than becomes a biz wich is fidderent from renting out your room to some one who pays you directly....

I was told some  safco underwriters will cover me and   Foremost for vacation rental 

not sure if that will help , Constance

[Pei0]

What did you end up with? 

[Lee211]

I signed on with Slice insurance and am in CA. It's an on demand policy that  you pay when you book a room only. We tend to have weekend guests so I tell the nights the unit is occupied and they policy covers it for the time it's booked. It's seven and some change per night but works for our situation so far. 

[Alison1]

My 85yo mothe-in-law lives in Dallas and rents one room on Airbnb.  They had a killer hail storm with hail the size of baseballs and everyone in the neighborhoods roofs were damaged.  Out come Traverler's insurance - their provider for 27 years - to veiw the dammage and she shows them the Airbnb room.  Boom.  Insurance cancelled as of the renewal date next year.  She called Allstate and they underwrite short term renatal activity under a policy called "Extended Premise Ammendatory Endorsement" so she will change next year.

I believe the insurance company's will catch up and start underwriting homeowners who do short term rental.  After all, most guests are great and there is money to be made for everyone.

If you go to the Nationa Association of Insurer's website you will find articles presented at recent conventions on STR and by AIrbnb.

Also, check your state's board of insurerance for regulations.

[David126]

Slice may met your needs for a top up, up to everybody to decide, main issue is the primary coverage, mention short term renting and many cancel.