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IMPORTANT INSURANCE TIPS

With the busy season quickly approaching, many people are renting their homes. If you are considering this, be aware that your Homeowner policy may have coverage exclusions or limitations. The duration, frequency, and way in which you rent are all factors that may affect your insurance protection. Each insurance carrier takes a different position on the rental of a Primary or Secondary home.

Many Homeowner policies provide continuous coverage for monthly or even seasonal rentals (Memorial Day through Labor Day) when it’s rented 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.

1. Clearly communicate with your insurance broker about your rental plans.

2. Be aware that renting to multiple tenants through websites like Air BNB and HomeAway may trigger coverage exclusions or limitations.

3. Failure to notify your insurance carrier before renting may result in the denial of a claim and potential cancellation of your policy.

4. If you decide to rent your home, be sure to require your tenant to provide proof that they have their own liability coverage while in your home.

5. 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.