Are you one of the millions of homeowners in America that has thought about renting out your second home or vacation property? With the popularity of short-term rentals gaining huge momentum across the US thanks to companies like Airbnb, it makes sense that you may have thought about hosting travelers at your home at least once or twice. It seems like an easy way to make a passive income and really, who doesn’t like welcoming newcomers to the greater Springfield or lake area?
But in reality, becoming a landlord or host via Airbnb involves a huge commitment from Missouri homeowners. From re-examining your current home insurance policy to investing in a regular cleaning schedule and opening your home up to a revolving door of strangers – there is much to consider before posting a rental ad online. Still interested in what it takes to become a successful short-term landlord? Keep reading to learn more about the process.
What Kind of Insurance Do I Need to Be an Airbnb Host?
Your current home insurance policy is tailored to meet the needs of your home and family, but it’s not designed to extend to ongoing short-term renting. That’s right; if you plan on regularly renting out your space to guests, you’ll need to invest in additional coverage. If you work with Airbnb to rent out your home, you will be offered coverage under their own Host Protection Insurance policy. However, because that policy comes with some specific conditions, limitations, and exclusions, you’ll still need to speak with your independent insurance agent to discuss additional insurance options.
If you decide that you’d like to rent out your property to short-term renters on an ongoing basis, your insurance agent may recommend small business coverage to protect your home and assets. This type of coverage is designed to protect any physical buildings on your property, the contents inside of your home and visitors to the property in the event of an accident, theft, fire or inclement weather.
Think that you may want to extend your short-term rentals to 3 months, 6 months or more? Then landlord’s insurance may be a better coverage option to fit your needs. This type of coverage also protects your home and assets in the event of an accident, theft or natural disaster but it does not provide coverage for your renter’s personal possessions. If you are thinking about becoming more of a traditional landlord, it is a good idea to require your tenants to invest in renter’s insurance coverage to protect their belongings.
What Other Issues Should I Be Aware Of?
One of the other big problems that many new landlord’s or short-term hosts tend to overlook is the issue that renting can cause with neighbors and/or your HOA. If you plan on renting out your second home or vacation property on an ongoing basis to a new set of strangers each week or month, you could potentially create a negative living experience for your closest neighbors.
Additionally, if you aren’t comfortable interacting with complete strangers on a daily basis, short-term hosting may not be a good fit for you. With Airbnb and other hosting sites, you need to be available to speak to your guests in-person, via email, on the phone, and through text. So if you don’t like the idea of talking to strangers regularly, chances are you won’t feel too comfortable with them in your home.
Contact Tagge Insurance Agency Today
Want to learn more about the different types of home insurance coverage we have available? Contact our friendly and dedicated insurance agents online for more information on comprehensive home insurance coverage and be sure to request a real-time quote today.