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.

[Sean140]

Hi Renee.  Please contact me tomorrow.  Sean F Murphy Insurance Agency Worth, IL. 

[L2]

Sean, can you please tell me about your coverage?  Im having this same problem.

[Sean140]

L2 I have a few insurance carriers who will cover your home while you’re sharing it on AirBnb or any other rental platform. This policy will take the place of your current homeowners policy.  Please contact me if you’d like to discuss this.  Sean F Murphy Insurance Agency Worth IL

[Janine189]

Hi Sean, any one in Missoula, MT. ?

[Sean140]

Hello Janine.  I can help you.  Please contact me when you have a chance.  Sean ** Insurance Agency Worth IL **

**[Phone number hidden due to safety reasons - Community Center Guidelines]

[Bonnie208]

Hi Sean!

I am Superhost in Oak Park and would love to talk with you about insuring our home/Airbnb.

My cell is **   Could we chat sometime soon?  Our current insurance with Farmers renews in February.

thanks so much!

Bonnie ** 

*Phone number hidden due to safety reasons*

[Sean140]

Hi Bonnie.  Please google me if youd like to discuss this.  I cannot post my number.  

Sean F Murphy Insurance Agency Worth, IL  Thanks!

[Frazier2]

Sean what is your email I would love to discuss some information about insurance. I am in North Carolina. My email is ** thanks 

**[E-mail address hidden due to safety reasons - Community Center Guidelines]

[Anonymous]

I would be interested in a quote.

jessie Sjue

jsjue@hotmail.com

[Patrice38]

Proper Insurance does not allow owner occupied Airbnb.  Do you also have insurance options for owner occupied with multiple guests?

[Teresa43]

I just got a quote from Proper yesterday and it is double what my other two estimates are and doesn't cover near as much.   This is an ongoing issue I am afraid. A local agent said the industry hasn't caught up to the need. Be careful with Slice (advertised by Progressive) and some others as they try to sell you a by the day insurance that even Progressive doesn't approve of if you are a homeowner. Crazy.  Help!

[David-And-Kimberly0]

Suzanne, I read what you posted on the peers.org insurance. I am with USAA and I am afraid that if I tell them I'm renting on Airbnb, they will cancel my renters policy entirely.  So I am at a loss to know what to really do.

Also, like William, I called Airbnb who told me also they had quote, "never heard of this issue" and would quote, "get back with me after talking to a manager".  Now I am feeling like that is the standard answer as they don't know how to address this.  Please let me know if you have any suggestions on this.

Thank you, Kim

[Lois-and-Darryl0]

After much research, and starting and stopping with Farmer's Insurance for short-term rentals, I found Proper Insurance Company.  It is a hybrid of homeowners and a short-term rental business insurance.  For us, it's about 35-40 percent higher than the homeowners policy we had, and yet it isn't only liability insurance coverage, it is business coverage.  The other insurance company here excludes intentional acts by guests; Proper Insurance does not.  It has liability insurance, but also much more.  It includes both intentional and unintentional damages, losses, theft, AND it covers income loss directly caused by loss of bookings if your home is damaged and needs lengthy repairs.  For example, Proper Insurance will cover the bookings that you have listed with Airbnb if you have a kitchen fire, until the kitchen is repaired.  If you don't have any listings in the future, there is no income loss.  The underwriting risk assessment is done via your actual listing on Airbnb including your photographs.  The company uses YOUR business acumen and your House Rules, etc., to underwrite your policy.  I love this feature - haven't had to use it, but it is created specifically for the needs of people who rent part-time or full-time their second home, as we do.  I don't know how it works for people just renting out a room, however.  PLEASE NOTE, I AM NOT AN EMPLOYEE, ADVOCATE, SALESPERSON, OR HAVE BEEN COMPENSATED TO SPEAK OR WRITE ON BEHALF OF PROPER INSURANCE.

[David-And-Kimberly0]

Thank you for the reply. As stated earlier we did get Proper Insurance which seemed to work here. And when we called to cancel our insurance with USAA the employee understood right away why we were switching. They are sending a refund check. 

We hope this helps answer this vital question!

thank you, Kim and David

[Kate24]

You may regret cancelling your USAA policy for a lesser-known company.