Insuring Your Summer Rental Correctly

Every summer, coastal communities fill with visitors renting beachfront homes to get away. You open your home to these short-term tenants, but are you protected if you rent to the wrong person? Here are five questions you should ask your insurance agent before the season starts:

Does my homeowner’s insurance exclude damage done by tenants?

Why it matters: If a group rents your home and causes damage by throwing a big party, your homeowner’s insurance may not cover you for the damage done.

Does my homeowner’s insurance coverage cover property stolen by a tenant?

Why it matters: Most homeowner’s policies exclude property stolen by a tenant that is in your home with your permission.

If a renter uses our boat, canoe or kayak, am I covered if something happens?

Why it matters: Most homeowners policies provide no coverage for watercraft rented to others. If someone is hurt due to a poorly maintained canoe or kayak, you could be on the hook with no protection.

How does my policy define “residence premises?”

Why it matters: The definition of “residence premises” identifies how you are protected and what you are protected for on your rental property. Some companies are ambiguous about coverage for short-term rentals and don’t explicitly contain coverage for Peer-to-Peer and / or Real Estate Rentals.

Does my insurance company consider running a nightly / weekly rental a business?

Why it matters: Most homeowners policies exclude business losses when renting a property. If you have a rental property you own through an LLC, and you can no longer gain an income from it, will your insurance company consider that a business loss, or traditional loss of rents?

What you can do if you don’t like the answers:

We have teamed up with a large network of insurance company partners to ensure we have you covered the right way in each of the scenarios above. Our licensed agents don’t represent the interests of the insurance companies, they represent our clients and are here to make sure you understand the policy you have and where it can be improved.

If you are uncertain about any of the questions above, please call us at 401.596.2525

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