I am sorry @Joel Oh but you are 100% wrong that a standard homeowners policy will cover guest damage when you are using the home as a short term rental.
The only way they would cover it is if they were unaware that you were short term renting the home. That would be fraud and is a criminal offense.
Just to be clear, you own 250 properties? I find it hard to believe that you would risk a 9 figure portfolio for $300k
I am not saying that getting a 1m payout on a destroyed property is easy. What I am saying is that AirBNB or VRBO aren't going to cover it. You need to have the correct insurance for a STR. That is a type of commercial insurance and not a simple homeowners policy.
Regarding the little things, yes that is what AirCover is for. I have had 3 claims. One for $100 for stolen stuff, one for $250 for a broken futon and a $1000 payout for a broken window (VRBO).
All of those payed out in about 2 days. All I did was send proof of the damage and repair bill.
We are talking about foregoing the correct STR insurance for homeowners expecting it to payout for major guest damage.
I think this calls for another patented day of Mike's Research Plan.
I will do my best to call 6 major insurance companies (not brokers) and get the scoop. I will also call a few lenders to find out what they say regarding using homeowners insurance for commercial purposes.
I figure that should put it to rest. I will start another post like I did with the STR valuation research.
@Joel Oh- if you are using a loan to acquire the property - the lender requires insurance ....if you own the property free and clear - your choice but I would still recommend insurance
If it is your owner occupied house and using your home for STR and the insurance has a premium for guest damage, you are insured just like any other STR insurance.
Joel - Can you expound on this comment/concept? What insurance company is selling an owner-occupied homeowners policy for a house nobody lives in with a premium for guest damages and then knowingly letting you STR the property full-time as an investment? Wouldn't a guest under that policy be a friend or family member you have over to your primary residence?
Hi Joel, AirCover may help with small claims, but standard homeowner's insurance won't cover STR-related damages. If your insurer finds out, they could deny claims. STR insurance is designed for these risks, offering protection for both damage and liability.
As an STR/MTR host in the Atlanta Metro Area, I recommend getting proper STR insurance for comprehensive coverage. If you want to discuss options or need guidance, feel free to reach out—I'd be happy to help!