Looks like I'm the only one in California. I'd love advice for CA policies if any lurkers.
I am (was) insured with Travelers. I just joined AirBnb and took in 3 (grand total = 3) guests (for grand total 13 nightes in 2017 and I had one weekend in 2016) before the huge storms this year took out a tree that smacked the side of my guesthouse. I am 20 feet away. So I am here, I give people their privacy but no wild partying is going on that's for sure, and I agree with an earlier poster that my place is in the best shape ever, EXTRA maintenance done, and inspected constantly, so these insurers are fully missing.the.point.
Anyway, never occurred to me that Travelers would seize upon the Airbnb listing (they don't even know there were only 3 guests, only 13 nights rented) to deny ANY AND ALL COVERAGE of this guesthouse that is primarily my space but occassionally shared. They claim the Do Not Cover Other Structures Rented or Held for Rental. None of which applies. (more on the definition of rental later). They sent out an adjustor from Missouri (the "catastrophe team" because all local agents busy with flooding and severe storms this winter); he commented it's just the sort of place that he'd like to stay with his wife if he visited wine country. Had I not volunteered that I have done AirBnb hosting, and asked if that rate would be used in determining my "loss of use" (since Travelers forces you to have a huge amount - mine is $128,000), it would not have been an issue. No guest was here when the tree hit, and clearly the damage was storm damage and not a rental-related liability. Define Renter. That's my position. I'm hiring a lawyer, if this has to go to the Supreme Court, I'm in for the ride, because we think this is truly a Bad Faith situation--it's not like a renter pushed over the tree or contributed in ANY WAY to the damage. Nor did any guest increase the exposure on this property since liability coverage during their presence is covered by AirBnb.
Please be aware that, at least in California, the terms "rental" and "renter" are defined by the CA insurance code; these are situations documented in written rental agreements where the renter has very definite rights. Which is exactly why most of us hosts don't do long term rentals (not because we don't believe in renter's rights, but because this is primarily our HOME, and we want to keep it that way but share when it suits us, not create tenancy rights for someone else).
My point is: RECOGNIZE THAT YOUR HOMEOWNERS POLICY WILL NOT COVER EVEN NORMAL HOMEOWNERS POLICY LOSSES --they will use AirBnb as an excuse to deny you. Until someone sets a precedent case. I'll do my best!
Travelers by the way, tried to renew me--proving its a corporate bureaucracy where one hand doesn't know what the other is doing--sent me a renewal just a few weeks ago, right in the middle of the denial process. No increase in my premium ($1100), no cancellation. But who would want to do business with these people!!!! So I didn't renew. I thought about dropping the "Other Structure" and renewing without coverage on it, but plays too much in their hands for the lawsuit. That is first and foremost MY guesthouse (my own house is 700sf, the guesthouse is my second bedroom and second bathroom, occasionally hosting AirBnb as well as friend/family guests).
To respond to @Angela0 earlier, right now from my experience I don't think hosting AirBnb guests without insurance to cover the liability is "playing with fire." I think paying insurance companies any premiums whatsoever is playing with fire--more like flushing your money down the drain. I'm half a mind to pay off what's left on my mortgage and go without insurance at all. If I had the $20,000 I have paid since I bought the place.... Look, ski resorts have insurance. Restaurants have insurance. B&B's have insurance. People with ROOMMATES have insurance. This is just fear and obstinance in an old-fashioned protected industry that treats consumers no better than United Airlines does. They pay off lobbyists and they know how expensive it is to sue them for a claim to get paid, so they are taking advantage, and hiding behind "We don't have enough years to determine the actuarial risk." Well, take a shot at it, set a policy--I like the sound of these policies with parameters - owner on site or not, number of days, maximum income etc.. Brokers are worse; mine collected a commission and says, "I tried to explain your structure has two levels and the damaged level has never been rented, I think that's a critical point, but they just wouldn't take my calls." And THAT process dragged out for six weeks, with promises of this and that "in a few days" all along the way. This has been living hell for me. And the only bright spot in my days are when my fun AirBnb guests arrive. The damaged structure does have two separate levels - there's no damage to the part that is rented. And they STILL denied ANY coverage of the never-been-rented damaged floor.
So, my broker's office suddenly sent a policy for $2500 (2.5x the cost) from Lloyd's of London. I don't want to work with this broker who just deferred to his insurer for two months of hell, so I'm not taking that either. I want someone I can talk to about the exact details or I'll take my chances with these nice guests. Yes, I have no insurance right now, and guests coming next week! But let's face it, I had no insurance before; I just paid monthly so a Traveler's exec could build a wine collection.
I will report back what I find. I'm calling:
Chubb - a friend with a beach house vacation rental in CA uses them.
Farmer's - asking about the Business Pursuit on Premises
State Farm - asking about Option10
Square One - although I think that was Canada
Proper/Propel? - although most seemed dubious
I do think AirBnb should put up a page with links, by State, to insurance services that offer appropriate services. Huge referral base if you ask me - they could probably get $ on every click. So ridiculous to not be open about it. Even the IRS has this covered. H&R Block has a wonderful little flowchart you can search and download online to help you determine if your AirBnb income and expenses should be reported on SchC or SchE (I'm a CPA, and I found it very straightforward and helpful). Farmers and Uber have this all covered. My cousin who occasionally drives for Uber said they set up a little stand for the Farmers agent to write policies to fill in the gap for the ride share service; all set up where the car inspections are done to make sure their drivers are informed. Instead of silence, AirBnb needs to head off trouble by being transparent. It's insane all of us are desperately reaching out to each other. BUT THANK YOU.
If you're reading, AirBnb I will take the job. I will do the research, post the links, keep the public informed and particpate in presentations to help you guys be more transparent in supporting your hosts.
Lastly, FWIW, I called AirBnb Customer Service, the gal was very helpful and sent me links to the actual policies for the Host Protection and Host (Coverage?) programs. THE LIABILITY IS PRIMARY. You don't need homeowners insurance for it --a few mistaken posts above. But obviousy the Host coverages start and stop when guests arrive and leave. Wouldn't have helped me when a tree hit my house in a storm.
I'm furious how I was treated by Travelers but again, I will echo a voice above who said let's seek out and support providers of service in the modern world who recognize that hosts are responsible homeowners, let's support them, and pull your business from the arcane plans that act like we're breaking bad and dealing illicit drugs.
Sorry to rant, hope it helps someone else.
