Hi all, I am new and wondered about getting extra insurance, any advice?

[Teresa635]

My homeowners insurance won't cover any guests etc.  I've done some research and found a company called "Slice" where you can turn it on when you need and off when you don't, it's about $8 per day when you use it.  Anyone have any other suggestions?

[David1424]

Airbnb covers $1 million.

I would suggest you get at least that in liability ($1-2 million) for yourself too. Make sure it is coverage for short-term rentals since it is considered commercial activity. A lot of homeowners policies void for rentals. I would suggest you say, you are going to rent, rather than you already have, as it could void your current policy. Call your insurance company and specifically ask if your policy covers short-term rentals by paying guests. You may be able to add a rider and if your broker isn't sure (most aren't experienced in commercial policies), just call the 800# to the policyholder directly. 

Otherwise, google short-term rental policies and shop them all.

My policies on my condos are $5000 deductibles for major expenses, like assessments. I had some building repairs last year and had to refund a number of rentals over the summer. My policy reimbursed me for all of them. One year I had a couple of claims for canceled bookings due to a hurricane, rental loss reimbursement. 

The policies can vary widely for coverage. 

I am completely blanking on the main insurance company that all the companies underwrite for. If I remember it I will post it here. 

When you go to choose a short-term rental insurance policy, make sure that the policy covers:

•  Contents of the property, including your own personal property
•  Damage to any part of the property
•  Individual health coverage and accidental coverage
•  Faults of both yours and the renters, to cover any accidents that happen
•  Coverage on the property itself if you have an accident and something happens to it
•  Dog bites, you never know when someone will show up with a dog (even if you don't accept pets).

[Teresa635]

Thanks David, this was very helpful!  If you DO happen to remember the name of that insurance company please post it here.

[Kristy43]

Hi @Teresa635,

I would suggest that you try and find an STR insurer that has an annual premium if you are using Airbnb regularly.  I just recently shopped around for insurace here in Australia and the per-stay type policies were just far too dear for our occupancy rate.   Also, make sure that you have maximum public liabilty... ours is $20 million.  One million or so won't go close to covering you if something catastrophic happens to a guest in your home.

Good luck!

[Teresa635]

Kristy, thanks for your advice.  I appreciate it from your Australian perspective. 

[Pete28]

It's an ongoing struggle - only a few companies cover STR where you share part of your home - Prosper is often quoted, but sadly they want 2-3x what normal homeowners would be ($2k for $10k deductible to cover $650k). Not good value since the risk is hugely offset but he size of the deductible.

The problem with slice is that at $8 per day it is actually more than Prosper, and it's open to debate as to whether your normal homeowners will cover you on other days if they discover you are using your home for business use etc.

[Megan88]

Hi!

I have been renting the basement of my home for over a year, and struggle with this.  I initially thought I was covered, since I have homeowner's insurance and then Airbnb offers additional coverage.  But when I looked closely at my policy, I found out that it does NOT cover anything related to short term rentals, and that I would probably have my insurance cancelled if they found out.  The Airbnb coverage offered acts only as a secondary insurance.  Since my primary would deny coverage, I'm guessing Airbnb would then say I wasn't properly covered and not insure me either.  

Proper and CBIZ are two reputable companies that offer insurance specifically for short term rentals.  The problem is that they cost 3-4 times what my current policy does.  In addition, CBIZ wanted me to have every renter sign a rental agreement and a hot tub waiver before the rental period, which would have been a major headache.  

I stumbled across Slice today and couldn't be happier.  Although I think I rent my property a ton, I really only average 110 nights per year.  By paying Slice $8.25 each night that I have renters, I can get coverage for about the same price that I currently pay for homeowner's insurance, making my total insurance cost twice what it was.  That's still a whole lot better than 3 or 4 times more!  

I keep my primary coverage, and just pay for nights I have renters.  Slice steps in as primary coverage on the nights that I pay for.  They have a low deductible, some no-deductible items, and what makes me happiest is that they offer $2 million in liability coverage, which is the real reason I want the insurance.  

I'm hoping that as homesharing and ridesharing become more popular, more companies like this will appear.  I think competition could drive the cost down a bit.

For now, I'm thrilled with the option of Slice.  It seems expensive, but unless you rent 300+ nights per year it  might be cheaper than some other policies.

[Pete28]

You are basically paying double though - and standard homeowners may or may not cover you  if it finds out you STR - my concern is they may not cover you even on nights when you have no one staying 😞

Slice seems good, but for 300 nights of Airbnb prosper would be cheaper, but still to expensive 😞 Someone in WA must have a better alternative ?