Homeowners' Insurance - Help!

[Anonymous]

I have been setting up my home to rent two bedrooms through AirBnB.

Today I talked to my insurance company about adding any coverage that would be needed for this use, and was unpleasantly surprised to find out that if I do AirBnB, They Will Not Cover Me At All.  They assured me that since my policy had just renewed I would still be covered for almost a year, but that they would not renew me, and they would not pay claims related to AirBnB.

They were also unable to provide me with any suggestions of companies that Would cover my home, and so far I have not been able to turn anyone up.

I searched the user forums, and found that this appears to be a fairly common problem, and that there are numerous horror stories of people having their insurance cancelled after just -asking- about AirBnB.  A few of them appear to have lost their mortgage as a result.  The only suggestions I saw were in Australia, New Zealand, and Canada, which does not help me much in the United States.

I called AirBnB support (after considerable effort finding a phone number), and was informed by the agent that she "Never heard of that kind of a problem before". Apparently, she does not read the community forums.  The agent promised to escalate the question to her supervisor, but I have heard nothing yet.

Needless to say, I want to get this taken care of, since it appears that there is a reasonable chance of losing my home over it.

Any suggestions would be appreciated.

[Heidi367]

I would love more information about that.  I'm having trouble with my insurance company.  thank you,

Heidi

[L2]

William, can you tell me if this has worked well for you (Peers.org)?  I have same problem and most find a carrier.

[Susanne48]

Here is the website http://www.homesharinginsurance.com/

[Kathleen87]

Susanne,  

The website for the link you showed  looks like it  works for liabiltiy but what I (and I think we all need) is a homeowners policy that covers us if our house burns down or there are other disasters, especailly if it burns down while a guest is in the house and perhaps even when they are not but the house is empty.  If the insurance company knows that you have violated your insurance contract by hosting guests, they may refuse to pay.   I have been hosting for over 3 years.  Two winters ago my basement was flooded due to a broken water pipe in the street  while I was out of town ( ong story).  Fortunately there was no guest in the house at the time.   The company paid and my hosting activies never came up but as the insurance companies get more savey about airbnb I wonder if they will ask more questions. 

There is one company that sent me a proposal for what seemed to be a very comprehensive homeowners policy that would cover my airbnb hosting but it was 1000$ dollars a year more than my current policy.  That would represent about 15% of my gross income from airbnb.  I don't host continually.  I am still considering it.  I won't do any whole house rentals until I figure it out. 

 The company is called Proper Insurance from Lovettville, VA

[Lois-and-Darryl0]

@Kathleen87:  Lots of activity on this string, so I'm not sure if you saw my original post about Proper Insurance.  I'm not an employee, but I knew that as soon as I listed our 2nd home with Airbnb, I would need to have insurance.  People keeping their homeowners insurance while running a business are really risking a lot.  Proper Insurance was developed specifically for vacation rentals.  They write policies for anyone listed with a vacation rental company, such as VRBO or Airbnb, etc.  They cover the home as a homeowners policy, and then cover the loss of the business income, etc.  It costs us $1200 a year; where we used to spend $700 a year so it's nearly doubled.  But their coverage is very liberal.  THis is not like other insurance companies that are not specifically for this type of business.  Proper Insurance came out of the need to have a company that covered vacation rentals.  I haven't had to file a claim, so I can't speak to that. BUt being a part of Lloyd's of London is how they are able to be so flexible. -- They are their own underwriters, and calculate their own risk.  Once I start renting out more frequently, then our premium will probably increase.  Their customer service is prompt, and while they may be new, they are design for the type of insurance I need.  While other insurance companies are making exceptions in order to cover others; that makes me nervous.  Good Luck!

[Kathleen87]

Thanks Lois n Darryl, 

I have talked to Proper and they may be able to insure me but they have yet to tie up loose ends with their underwritter, Lloyds of London. They seem to be a good choice for people who rent a remote cottage but  I primarliy rent to guests in my home.   They have not been comfortable with that rental situation in the past but are working with Lloyds to come up with a policy that would fit my need.  I agree they seem to offer a comprehensive policy.   They told me  they would know for sure in June and would get back to me then. Apparently they have a list of 500 potential airbnb clients to call.

I will let this community know if it works out. 

[Kathleen87]

I don't think it will be cheap.  I think the price will be about 1500$

[Sean119]

Kathleen-

Thinking and knowing are two very different things....

[James379]

I was initially quoted $2,800/yr by Proper this month (Sept. 2017) for similar coverage that I am currently paying ~$680/yr for standard homeowner's ins. for my 3-bd, 2-bath, 1,300-ft2 home.  I made some adjustments (doubled deductible and reduced contents value, etc) to get that reduced to ~$1,800/yr.  Unfortunately, when I called to actually instate it, they told me they would not offer it to me becaused I lived in the home, too.

James [Personal information hidden]

[Lisa515]

@James379  I was quoted $1600.  You must have an expensive home to rebuild or some other factor going on (increased fire risk, etc) bc that's really high.  I talked with someone who knew I lived in the home too, albeit upstairs as the apt is private in the basement, and they didn't have a problem with that. 

[James379]

Lisa, Proper's revised quote was only $165 more than yours.  They said that because I lived in expensive Orange County, California, the cost to rebuild ($200/ft2) was higher than other areas.  What's your cost to rebuild in Ann Arbor?  How many sq. ft. do you have?

James

[Lia---Garry0]

@James379Please double check with Proper if  you are renting rooms in your house NOT and  a seperate structure. They told me that if there is a shared entrance or any shared spaces between the guest and other guests or the host and guest that their coverage would not apply ... I thought you said that you rent rooms in your house?
The agent at Proper with whom I spoke last week said absoultly NO shared spaces ...

here's his contact info --

[Personal information hidden]

If you wre told shared spaces can be covered, please let me know and let me know with whom you spoke ... Thanks much.

[James379]

Thanks, Lia.  You are right.  I mentioned it in another post but should have mentioned it here that Proper originally misunderstood my setup and gave me that quote and then later rescinded it due to the reason you stated.

James

[Lia---Garry0]

@James379  Then we are both in the same situation ... still searching! Very frustrating.  A local agent has sent me some material ... I will study it and if it looks promissing I will try to attach it here for you ... stay tuned, as they say!

[Nancy364]

I have an Airbnb in Arizona. I rent out the entire home. Travelers cancelled my insurance because they do not do short term rentals. I spoke with Proper and was willing to pay anything. Unfortunately, they denied my coverage because my house is supposedly near a fire area. I am getting desparate, any suggestions?