Air B&B (the corp) start helping us deal with insurance companies about homeowner insurance

[Anny3]

I have run my Air B&B for 2 years. While going over my homeowner insurance policy I mentioned that I had an Air B&B to my agent and his ears went up. After checking   he wrote and told me None of the 12 insurance companies  would insure me

Foremost Insurance Group
Hanover Insurance Group
MetLife Auto/Home
Maine Mutual Group
Main Street America
National Grange Mutual
Patriot Insurance Co  
Patrons Oxford
Peerless Insurance
Philadelphia Insurance
National General

Travelers

"I am writing you to summarize our conversation this morning regarding the combination AIRBNB, apartment, and home exposure at your Southwest Harbor property. I have confirmed with all admitted carriers that our agency represents and they have all declined the risk due to the combined exposure.

As stated in our phone conversation, I am required to notify your current carrier about the business exposure at your home. I expect that they will issue a cancellation due to the exposures. At which time, our agency's only option will be to provide you with a quote from a non-admitted market. The resulting quote will provide drastically decreased coverage for a much higher premium than you've historically paid.  Non-admitted carriers are not licensed with the State of Maine Department of Insurance, therefore they offer coverage that may not be adequate for your needs.

As we had discussed, our agency only represents a very small portion of the markets available to consumers in Maine. Therefore, there could be a market outside of our agency that allows an AIRBNB, Apartment, and Home as an acceptable risk.

Non-admitted carriers, as described below, are carriers that are not licensed in the State of Maine therefore have no 'standardized' required coverage. The result is usually a quote that is very pricey with minimal/inadequate coverage. Lloyd's of London is a well known non admitted market that many have heard of."

So. as you can see the insurance companies don't give a hoot about 'Air B&Bs Guarantied Insurance' for us. and WILL NOT GIVE US HOMEOWNER INSURANCE!

In short it is a ruse for the all of us that don't understand the Insurance industry and their lingo, and most of us never thought of calling our insurance company to find out either.

So I suggest that this Billion dollar company (air B&B) start a suit against the insurance companies with a class action for all of us connected (and really the main reason the company exists at all !) to force them to  continue insuring our homes ! And AirB&B you could Probably enlist all of these companies listed below, as well, because I am sure the insurance companies consider all of them with the same rules!  By killing our homeowners insurance by having this rule ( which is not advertised nor widely known) It is killing your business and ours .

• Tripping.com. A leading search engine for vacation rentals, it's got over eight million properties in 150,000 destinations, offering travelers with more than wide variety of unique accommodations especially for the long-term. ...
• FlipKey. ...
• HomeAway. ...
• VRBO. ...
• HouseTrip. ...
• VayStays. ...
• VacayHero. ...
• Roomorama.

[David126]

Generally speaking Homeowners Insurance is for people living in their homes, using their property as a home.

Some may include incidental business use, some do not.

Your Agent sounds like they only do Homeowners insurance and you need an Agent who does Business's.

[Anny3]

yes, I am going to have to buy Commercial Business Insurance for a guest room next to our bedroom

that I rent out ! and it will cost me almost $1000 more a year!  ,Not happy.

[Cynthia-and-Chris1]

@Anny3 Unfortunately that’s the cost of doing business. Many just don’t tell their insurance carrier and assume the responsibility themselves. Or they get costly commercial insurance. Weigh the cost vs benefits. Might be cheaper to just stop Airbnb’ing. 

[Marcia163]

I am currently having the same problem here in Montana.  Air bnb bungalow on same property as my home.  Will not insure with homeowners.. need to do a business policy almost double in premium. Kind of takes a big chunk out of any income earned!  

[Tim-and-Holly0 · Accepted solution]

@Anny3:
Farmers Insurance (at least in Arizona) started issuing short term rental policies November 2, 2017. We were able to go through our Allstate agent to get a policy from American Modern for an exclusive use STR. Allstate has an "Extended Premises" rider for rooms or guesthouses in/on your primary residence property.

[Anny3]

thank you for the heads up

[Petra445]

For CA hosts, American Modern has not renewed their insurance policies in California.

[Chelly0]

I'm in California. I had the same issue with Mercury Insurance, but haven't received a non-renewal notice from them. An Allstate agent found a product through Pacific Specialty that covers homeowners living in their homes and renting rooms and doesn't care about how the renters are found, the length of the rental, or how many renters. My insurance premium went up from $650 with Mercury to $1023 with Pacific Specialty. 

One thing though, I literally got a different answer from every agent I spoke with. My current agent said Mercury won't cover me if I have renters, another said they'd cover me if I had 2 or fewer, another agent said they had a product that would cover renters but not those found through Airbnb. Another agent said Pacific Specialty wouldn't cover renters unless it was a duplex-type situation, and finally the agent I went with said Pacific Specialty didn't have any restrictions on renters except that the renter's property would not be covered. 

So, I went with Pacific Specialty and am keeping my fingers crossed that this agent is correct and not the other one. 

[William291]

Hey Chelly, 

Just seen your response! Yes, the agent you went with is correct! Just to confirm! However, if you're renting out rooms while you occupy the home... Then you need to change it up to a different insurance carrier!

If you need any help! Just let me know! 

I host here in CA (Los Angeles) and own an insurance agency... -We specialize in personal and commercial property! -Broadway Insurance Services, Los Angeles, CA 

If you ever wanted, just send me an email... Aside from just Pacific Specialty (not sure why other brokers haven't figured this out...) There are probably 6 different carriers that have really good products for pretty much any type of short-term rental situation... 

Feel free to email me too if you ever wanted...

-Will

[Personal information hidden for safety reasons]

[Mona105]

Are you able to ping me and discuss this. We are trying to figure it out for northern cali. 

[Bill960]

Thank you, I am in a similar situation.

[Sean140]

ChellyO- Please contact me if you are still looking for an insurance carrier who will cover your Airbnb property.  I have a few carriers who will write these types of risks.  I am carriers available in all 50 states.

Sean Murphy

Seanfmurphyinsurance@gmail.com

708 361 9430

[Petra445]

Can you contact me, Sean?

I'm in CA and need a new HO insurance for a second home, airbnb .

Its a cottage in the desert.

[Mike-And-Jane0]

@Petra445 it won't work unless you tag @Sean140 . you are far better using his email address