Air B&B Insurance question

2 Replies

We are about to finish up on a rehab here in Buckeye Lake, Ohio and are excited to turn it into an Air B&B home. My current insurance company cant write on them yet. She referred me to a company in Westerville (Berkshire Hathaway ) who can but they want almost 3 times what my normal insurance would be for a rental. I understand its more traffic but does this seem normal?   

Originally posted by @Leslie Fitch :

We are about to finish up on a rehab here in Buckeye Lake, Ohio and are excited to turn it into an Air B&B home. My current insurance company cant write on them yet. She referred me to a company in Westerville (Berkshire Hathaway ) who can but they want almost 3 times what my normal insurance would be for a rental. I understand its more traffic but does this seem normal?   

 PM me and I can refer you to an insurance agent that can help.  

Hey @Leslie Fitch congrats on the rehab and welcome to BP! Do you guys plan to rent out the entire property at a time through Air B&B or do you plan to live in the home and rent out a bedroom? There is a big difference between the two with Insurance. Let me briefly explain...

If you rent out the entire property and do not live in the home then it is consider a vacation/short-term rental property which requires a very similar policy to a landlord policy. There are some differences like a 90 day vacancy provision instead of 60days for example. This policy should not be priced any different than if you were to make it a normal rental policy.

If you are living in the home then that changes everything as the risk is much greater and therefore you will need a commercial policy AKA you are now a "Bed and Breakfast." Yes this policy will cost more than the normal landlord policy.

Feel free to reach out if you have any more questions and best of luck.

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