Spoke with an agent with Proper Insurance who recommends NOT hosting within your home (California)

[Wayne134]

I've been shopping around for a replacement for my State Farm homeowners policy. We live in California. I had read around on this forum that Proper is working on introducing a product for our type of situation (short term rentals within our home) so I gave them a call to inquire. Unfortunately they're still working on it, but the agent did give me some advice and the gist of it was: you shouldn't host on AirBnb in your situtation. Short of a commercial liability policy, which comes with a MUCH higher premium, he said there's nothing else on the market right now that covers all the risks that arise out of homesharing (his official term for our situation).

I mentioned I was looking into Slice, but he said their coverage is inadequate and is more designed for people who want to earn money on occassional opportunities (his example was big events happening in your city), rather than regularly hosting. And because it's not a replacement for your existing homeowners policy, anything beyond their coverage will be denied by your primary policy. His example was that if a guest burns your house down and you need to rebuild, they'll only provide $10,000. There's a lot of conflicting information out there, and I honestly don't know whose word to trust. 

Hoping to get some clarity and hearing some options from the community.  

[Kimberly54]

@Wayne134, here's what I did:  (Lots of phone meetings/faxes/back & forth)  At first, my insurance company said I'd have to add a commercial policy.  No-way $$$.  After talking to a few people about my hosting experience (not on Airbnb), then faxing them a copy (lots of pages) of the Airbnb policy, the underwriter finally agreed to let me host at no extra cost to my regular policy.  Two things I had to agree to:  no cooking, and not more than two rentals per month (on a yearly average).  This was perfect for me, and cost me Zero.  But I had to get everyone involved and on board. 

So it sort of hurt my feelings that my insurance company said, "you can't cook,"  (WHO TOLD YOU???), but a commercial policy just wouldn't work at all. 

Good luck, and you are wise to be careful about looking into this kind of thing!

[Wayne134]

Which insurance are you with that agreed to host at no extra cost and what people did you discuss this with?

I wish they would make it easier to hash out a policy that works for both parties instead of going through hoops with an agent who isn't always up-to-speed on these matters. Was there discussion of how the two rental a month agreement would be accounted for? 

[Kimberly54]

@Wayne134, I have USAA.  At first they gave me the brick-wall/no way, then I went to Airbnb, got the copy of the policy, then another agent at USAA, and finally a discussion with the underwriter.  This was not the easiest negotiation, but it worked out. 

We didn't discuss anything about a "two rental a month agreement."   Not sure what that means.  But whatever you do, you need to be covered.  My insurance company wanted to be very clear about what Airbnb would actually be covering and they don't want to be stuck with a bill because of something that happens-- I'm renting part of my home.

It's NOT easy, and you are asking the right questions! 

Be safe,

[Lisa723]

@Wayne134 our homeowner’s policy covers our “homesharing” but only because there is a locked door between our living area and our guests’.

[Wayne134]

We have locked doors between our bedroom and guest bedrooms, as well an office space and the garage where we keep valuables locked in. Is that what they require and what company?

[Kimberly54]

@Wayne134, nobody "requires" anything.  If you feel all buttoned-up, you're good to go!

I care about little stuff like, if my house burns down.  If I have accidentally invited someone crazy in (not likely at all) and my property is somehow destroyed (also not likely), if, if, if somehow things get out of control (again... not likely)  you are covered.

If you're not worried, then you have no worries at all! (But your insurance company will probably give you flack if they learn--uninformed--that you've been renting your place--making money-- and then got in some trouble.)  THAT is not part of their contract with you.

Just be informed.

Best,

[Lisa723]

@Wayne134 no, they require that the space is completely separate with a locked door between, so guests have no access to our living area. The company is Amica and I don't think they will do it for new customers.

[Branka-and-Silvia0]

@Wayne134 @Kimberly54 @Lisa723 

in Croatia, there is just one insurance company (as far as I know) which offers Airbnb-insurance package, but the biggest sum you can get is just $300 / year .

We all play Russian roulette here...

[Sean140]

Hi Wayne134 and other hosts.  Please contact me if you are still having a hard time finding a reputable insurance company at an affordable price. My agency covers all 50 states and we have multiple carriers who we can get prices from.

Sean **

**Sensitive information removed

[Pete69]

Travelers and Kemper will write policies that cover you for Airbnb. The nice things about Travelers is that they let you can switch on and off without having to completely switch to another carrier. I got my insurance through Broadway Insurance (Los Angeles).

In past years, I only paid about $65 a month (extra) for insurance that covers for Airbnb.

Only $10,000 in coverage??? I think that's a bunch of malarkey. Never saw any such thing in my policy. Sounds like the agent just doesn't know what they're talking about. I would ask them to show the actual legal language that reduces coverage to just $10,000. Where is the written legal loophole? Show me the beef!