Hello! I am listing my property on VRBO and only have standard homeowners. VRBO says it offers a $1 million liability coverage. Should I still change my homeowners insurance to be covered? Also, should I set up an LLC or S-Corp to have payments go to instead of me personally? Thanks!
You may find that your current insurance will not cover you for short term rentals. Some insurance companies will insure STR but not if the guests stay for less than 7 days so be sure to ask. As for having the STR in and LLC, I feel it's a better bet to do so. Oh and that 1 million dollar liability coverage VRBO / AirBnB like to advertise. Don't count on it, they are only looking out for their own interests, not yours and mine.
Hey @Jennifer N., like @John Underwood said, you will need STR insurance. We use Proper. They are more expensive than Foremost, but I think they have better coverage. I haven't heard anything negative about Foremost either.
The 1 million dollar guarantee is worth what you paid for it. I will say I had one guest damage a window (broke the locking bar) and AirBNB paid up the replacement for a new window with little fanfare.
Other than that, I haven't had any kind of issues that would require use of their coverage.