During these unprecedented times, more and more people are looking for ways to increase their income in less traditional ways. One of these ways is via vacation rentals for those homeowners who have second homes available to rent out for a weekend or maybe even an extended stay.
The first thing you’ll want to consider is if you truly want to rent out your home and for how long. Are you planning on doing extended stays? What season would be the best time to rent out your home? Do you want to stay on the property or will you be at your primary residence while it’s being rented? There are plenty of other things to consider as well before making the decision to rent out your second home.
Since every situation is different, you will have to discuss your terms with your insurer since some of them may want you to purchase a brand new policy if you intend to share your home. For example, if you only plan to rent it out for a single instance, you might be able to work something out with your existing policy by extending the coverage.
Your Home as a Business
If you plan on using your home as an AirBnB for example, you should consider how the home, and what’s inside is protected. In regard to the guests’ belongings, if you have a standard homeowners policy, the guests belongings will usually not be required. That is why you should look into a business policy since your home will technically be a business in that situation. When it comes to your property, if something goes missing for example, insurance will usually not get involved here either if the home is being rented by a paying guest. Since home sharing has become more popular as of recently, you might be able to get an endorsement to help protect your belongings, so be sure to ask your insurance provider about this as well.
Protecting Your Stuff
In any case, if you are renting out your home there is no guarantee who your guest might be and how they plan to use your home so it’s important to consider all scenarios. That includes thinking about damages to your home and property. Since most policies don’t cover personal property damage, it’s important you do your best to vet your guests and make sure they are able to cover any damages to your home. You could also look into a personal umbrella policy which helps to cover the cost of items that need to be replaced.
If you are planning to do an extended stay, this could put you in the landlord category which would mean you would need a landlord insurance policy. If this is the route you’re considering, you may want to discuss renters insurance with your guests which can help to keep both parties’ items’ protected.
Reach Out Today!
It may seem like a lot of different options, but making sure you have the correct policy in place will not only give you peace of mind when you are away from your second home, but it means that your home will be protected whether or not you’re there. Contact our team at Willoughby Insurance so we can discuss your options!