Vacation Rental , airbnb Insurance

23 Replies

Hi Everybody,

I am an airbnb host and renting out space in my 2 family home. I live in one of the rooms.

I was wondering what kind of liability insurance other airbnb hosts are using?

( vacation rentals, homeaway, VRBO )

Thank you

Currently I am in the same boat as you. I just have a good homeowners policy.

You are now running a business, call an insurance co. & ask because you are not covered now.  When you get a quote, then check with your own insurance co. & ask hypothetical questions and get a quote because they may drop you immediately.  Then purchase the correct insurance so your ASSets are covered.

Check out link above from NOLO.

CBIZ is insurance designed specifically for vacation rental owners, we have them on all 4 of our Vacation Rental properties. 

If you have a claim on a vacation rental that is only covered by homeowners you will most likely not be compensated...if it's a liability claim could then become a legal it is definitely something to be concerned about. 

Many homeowners policies allow you to rent 2-4 weeks or so only. Check your policy. 

@Maura Paler Thank you for the info. I have been trying to call CBIZ 2 days now and only voicemail !!!

I am currently working on adding a commercial general liability policy to our rental dwelling policies with State Farm. I'll repost once I review with my insurance agent. 

I came clean with my Farmers agent on my vacation rental in Lake Tahoe and he came back with a landlord policy, surprisingly it dropped my rate in half. I have another homeowners policy with USAA on my primary, and an umbrella policy through on of USAA's intermediaries. It's complicated, some don't like Tahoe due to wildfire risks, some don't like the rental aspect, so hard to get it all under one company (and affordable). It took some time to piece together.

As an insurance agent and VR owner, I would say it is not easy but the best bet is always to be honest with your agent/carrier.  Some carriers will away it and some will not.  I know in Idaho I use Farm Bureau and they are happy to do it. 

I have a vacation rental and I think it is really important to have the short term rental insurance. It is specifically for this purpose. Your general homeowners policy is not going to cover a short term tenant who gets hurt and a regular long term rental policy is not going to cover short term rental.  My policy will even pay lost rental earnings if I have damage to the property that will prevent me from renting while it gets repaired. I also used CBIZ/Tudor and I have been really pleased with them. It did cost a little more but it is worth the peace of mind in my opinion. 

I am familiar with CBIZ they are an insurance program manager but a bit nervous to suggest moving any property insurance to Tudor.  I am going to get a quote on mine and get a copy of the policy to review to see if there are any issues.

@Scott Sutherland

@Jennifer Rogers

@Tyler Stamets

@Maura Paler

Thank you for your answers everybody.

I asked few weeks ago my own insurance (Geico) and they said NO. Today I got a letter from them saying because I am doing/planning short term rental they will not extend my policy :(

I am still shopping, I talked to CBIZ and haven't heard back from them?

@Cole Schlack

Cole, DO YOU HAVE ANY CONTACTS IN NJ, somebody that I can call?

Thank you

I'm surprised no one mentioned that. Yea that's a big problem I've seen people have is when they inquire with their insurance company, it usually ends in a dropped policy if they don't offer commercial liability. This is because they automatically assume the worst like you are currently engaging in using your home for financial gain. 

Hi Jaago,

Our company requires our vacation home owners to carry liability insurance, and CBIZ is definitely among the insurance companies that our homeowners typically use. A lot of them also use the standard VRBO insurance. 

Best of luck! 

I went with CBIZ after USAA (who I dearly love) indicated that they would only insure through a partner of theirs for about $7.5k/year.  CBIZ was approximately 1/2 of that, but still quite a bit of money.  I would love to know if there are other carriers besides CBIZ/Tudor just to keep the options open.

We just closed on our VR and used CBIZ.  My wife, an insurance agent, could only find one option through her usual contacts which was almost twice as much as CBIZ.  Also, she was happy with what is covered, limits, etc...

Has anyone experienced their SERVICE when a claim was made, which is very important???

@Kelly B. , I am also very interested to know about the claims service these companies provide.  Bumping this to see if there's someone out there who knows something!

Hi, I have been  using CBIZ but want to explore to see if there are other options but I am not finding many other companies that offer the same coverage for vacation home rental owners. Does anyone have experience with other companies.

Also, I contacted Proper Insurance and they were very helpful until I said I had a policy with CBIZ and then they said they could not help me and were very mysterious when I asked why they could no longer  help me. Anyone have any information about that?

@Jennifer Rogers are you not able to find a policy for short term and seasonal rental insurance for property insurance or liability or both?  

I've always sourced my insurance from local brokers that shop multiple companies. I've never had luck going directly to the source for this type of coverage, usually a good local independent agent is what's needed. And you want to speak to the agents that handle the commercial side of the business, not the residential side. 

All my policies state seasonal and short term rental as a part of the underwriting declarations. 

Also, if you don't have it yet, a PERSONAL umbrella policy is always a good idea.  $1MM umbrella should be less than a couple hundred a year.  A lot of people, myself included, get it from our auto insurance companies.

First off. We can write VRBO with a few markets. Berkshire Hathaway being one of the best (except tx and fl).

Also a PERSONAL umbrella will follow form on the homeowners, so make sure you don't fall foul of the business liability exclusion, which if you are renting more than one week, you certainly will.

We can write in all states, Berkshire does exclude tx and fl.

Sorry woke up early and messed that last post up. Here is the issue the liability exclusion on the homeowners form. Berkshire Hathaway will write a VRBO but many will not. Berkshire will write all states but FL and Texas.

We do represent all states so if you have a specific question, contact me by PM. General I'll gladly field here.

I participated in a discussion on the sharing economy at the last CPCU convention (chartered property casualty underwriter) about the pitfalls of current coverage offerings. Don't try to hide this from your agent, they have solid grounds to exclude claims if you are VRBO/short term renting.

Thanks Derek. I am traveling right now but will PM you next week if that is ok.

Thanks for the information @PeterR I appreciate it.

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