SMART INSURANCE TIPS
With the busy season rapidly approaching, it’s important to be aware that your Homeowner policy may have coverage exclusions or limitations regarding rentals. The duration, frequency, and way in which you rent out your home are all factors that may affect your insurance protection.
Here are a few important tips:
1. Clearly communicate with your insurance broker about your rental plans. Failure to notify your insurance carrier before renting may result in the denial of a claim and/or cancellation of your policy.
2. Each insurance carrier takes a different position on the rental of a Primary or Secondary home. Some carriers do not allow renting out one’s Primary home.
3. Many Homeowner policies provide continuous coverage for monthly or even seasonal rentals (e.g., Memorial Day through Labor Day) when renting to the same tenant. On the other hand, frequent rentals to multiple tenants can be considered a business exposure that may exclude coverage by your policy.
4. Be aware that renting out your home through home-sharing sites — like Air BNB, VRBO and HomeAway — may trigger coverage exclusions or limitations.
5. If you decide to rent out your home, be sure to require your tenant to provide proof of liability coverage while in your home.
6. With renting comes increased liability exposure. Please review your personal liability limits and be sure to add any home that you own or rent to your Excess Liability (Umbrella) policy.
For more information contact:
Christopher F. McDonald | Amaden Gay Agencies
P.O. Box 5004 | 11 Gay Road | East Hampton, NY 11937 | P 631.324.0041 ext. 341 | F 631.324.0671 | cmcdonald@amadengay.com
