Extra insurance or LLC?

[Barbara2243]

I'm new to Airbnb.

I have a shipping container converted to a tiny house. My first guest in Aug.

Question being. Should I get LLC? My main concern is protection of liability.  I realize ABB has host insurance but is that enough?

Thanks, Barb

[Ann72]

@Barbara2243  God no, you have to have your own insurance!

A lot of insurance companies don't cover short-term rentals, so ask your insurance agent to find you one who does.

[Barbara2243]

Thx

Yeah, having a difficult time getting covered. That is why I considered LLC. 

I'll ck again with my ins co.

[Debra300]

@Barbara2243.

I found this comment on Insurance.com:

"...some companies offer or even specialize in short-term rental coverage; these include Allstate HostAdvantage, Proper Insurance and CBIZ."

[Ann72]

@Barbara2243  I formed an Llc and the insurance is in its name.  My agent found coverage through Merrimack Mutual.  Maybe an LLC is easier to cover?

[Ann489]

@Barbara2243    my husband is an attorney and the first thing he suggested doing when we were looking to get into the hosting business, was to form an LLC.    The main reason you may want to do this is to protect your assets. An LLC protects you from a lawsuit, in the case your business faces circumstances such as bankruptcy.   Of course, you will still need to look into short-term rental insurance.  Most likely, your homeowner's insurance will not cover your rental. 

And as someone previously mentioned--do NOT rely on Airbnb's "host protection" which is really just a useless gimmick.

[Marta-and-Arnold0]

Interesting about an LLC. I was just told by my Home ins. of 27 years, i'm being dropped cause of airbnb. I'm not sure if I will continue, if it is worth it, or should I jsut get an LLC. Those can be an issue as well.

[ChrisandDave0]

Hello - i have established home as LLC buy ABB support told me they won't auto draw and pay state taxes. How have you managed this? Dave M

[Debra300 · Accepted solution]

@Barbara2243,

The Airbnb host guarantee is not an insurance, and any claims paid to a host is totally up to their discretion.  It also will not protect you from any form of liability.  I recommend that you contact your current insurance provider to get information regarding coverage for an Airbnb, and also research with other insurance companies for comparison.

I am sure experienced hosts will provide input in regards to setting up an LLC.  I didn't, but my space in Cobb County is a part of my home, and covered under my home owner's insurance.

[Barbara2243]

Thank you

[Barbara2243]

Is anyone checking temperatures or asking Covid questions when guests arrive?

[Ann489]

@Barbara2243 

that's a good question.  I don't know if that is even enforceable.  We have decided not to host for the remainder of the year since our guesthouse sits on a shared property, but maybe some of the hosts who are currently hosting have any suggestions.

[Barbara2243]

Thank you.

Yeah its scary

[Debra300]

@Barbara2243,

I do not administer temperature checks at my Cobb County apartment, but will be required to do so when I re-open my guesthouse in St. Lucia.  In fact, the St. Lucia government will be requiring STR properties to go through a certification to be approved as an alternate accommodation (compared to the big hotels/resorts) which includes COVID-19 training, cleaning guidelines, and performing temperature checks on guests upon arrival.

When I opted-out of the Enhanced Cleaning Protocol, I said that I wasn't going to provide face masks and hand sanitizer to guests , and that is true for Georgia (it's too politicized), but I may not have that option in St. Lucia if I want to start hosting again.  I am not mad about it though, because the St. Lucian government and the citizens have done a great job of keeping down the number of confirmed virus cases.  As of yesterday, there have been only 25 cases with no deaths, and most of them were visitors or returning residents.  The island has recently re-opened its borders, and all persons (except aircrew members) are required to have a negative PCR test within 7 days of arrival or they will be tested at the airport for a fee of $100USD.

As returning St. Lucians, my husband and I will automatically have to go into quarantine, and stay at a government sponsored quarantine hotel.  I will share the travel and quarantine experience in a few weeks.

[Ann72]

@Barbara2243  I'm not, but that's because Maine requires testing within 72 hours of arrival in the state or quarantining for two weeks.  Five states are exempt from this rule.  My guests from non-exempt states have to fill out a certificate of compliance (https://www.maine.gov/decd/sites/maine.gov.decd/files/inline-files/KeepMaineHealthy_GuestComplianceC...).

I'm sorry your governor has handled the whole thing so badly (my daughter lives in Savannah and keeps me informed), but it means that individual business-owners like you have to be more vigilant.  You could borrow a certificate or a list of questions like the one suggested by the AMA:  https://www.ama-assn.org/practice-management/sustainability/use-covid-19-screening-script-when-reope...