property insurance

[Ying198]

Hello everyone,

be a host , how do you pay your house property insurance in USA? I paid mine over doubled than before because airbnb hosting. today I received a letter from my insurance company and said my house is non renewal due to the airbnb exposure. does anyone have a same issue? are they going to shut down us or make sure it's unaffordable to run this airbnb business? do they need to know we are running airbnb at home?

I appreciate your suggestions and comments.

looking forward to your respond.

thank you

Ying

[Lorna170]

@Ying198   There are two types of insurance.  Homeowners who do not rent on AirBnB will have a regular policy that will protect them from damages to their home and property.

A person who rents all or part of their home on AirBnB or via other OTAs needs to have Rental Property Insurance.  This is a different kind of policy, is generally more expensive, is hard to obtain and may be arbitrarily cancelled by the company at the end of the term.  

The insurance company cannot "shut you down" from having AirBnB rentals, but they do not have to insure your property and they can (and will) deny any claims if you have the wrong type of policy.  You need to contact an insurance agent and get a new policy that will cover you and your property for rentals.

[Debra300]

@Ying198, @Lorna170,

Insurance providers handle Airbnb rentals differently depending upon policy type and location of the property.  I have USAA insurance for my property in metro Atlanta, GA.  I contacted them before I listed our rental space, and they informed me that my regular home owner's policy covers renting out part of your home under Airbnb.  I didn't have to purchase an additional rider, and my premium has not increased.

[Ying198]

Hi Lorna,

I appreciate your response.

since I rent my guest house on airbnb, so I must let them know this?

I paid it as a commercial insurance last year, then paid my main house insurance separately. I paid almost triple because they said other wides I can't get my house insured. and more threatened this year.

should I seek for different insurance companies, or are they all the same as soon as they know I rent my guest house on airbnb? 

please advise if you could .

much appreciate it from all host.

thank you

[Lorna170]

@Ying198   Yes, in order to be insured properly you need to disclose that you rent the property out on AirBnB or other rental platforms..  I would recommend that you call an independent insurance agent and have them "shop" for the best policy and best price for your rental property.  My agent does this for me every year; sometimes he can find a better and cheaper policy, other times he will recommend that we stay with the current company.  

[Ying198]

will do. I appreciate it. thank you