Our Miami homeowner’s insurance attorneys have spotted a trend that may effect some homeowner’s insurance coverage. People across South Florida are making considerable extra sums a year by hosting guests in their homes. You may have heard of popular websites like Airbnb or Homeaway. These websites allow you to place your home or a room within your home for rent. Renting out your home has always been a potential source of revenue in Florida, but with these websites, the trend of home and room rentals has exploded.
Will Your Homeowners’ Insurance or Renters’ Insurance Policy Cover Airbnb Rentals?
If you own your home or condominium, you will almost surely have a homeowners’ insurance policy. Your homeowners’ insurance policy is intended to cover your home in the event of loss of the home or your possessions. It will also offer coverage if you or a guest is injured on the property.
Before placing your home on Airbnb or a like website, you should read through your policy carefully. Homeowners’ insurance policies vary significantly from insurer to insurer. Often, however, they will exclude coverage for homeowners’ who are running a business in their homes. If you frequently rent out your home or a room within it and generate significant sums from the business, your insurer may claim you are running a bed and breakfast and deny coverage in the event one of your guests is injured on the property. On the other hand, if you only rent out your home occasionally for short periods of time, you insurer may still provide coverage. Currently, this is a grey area in homeowners’ insurance law.
If you plan to rent out your home or a room within it, start by calling your homeowners’ insurance company and asking about its policy. Be clear as to how often you plan to rent out the home and have the insurer put in writing its policy on the matter. If you meet with issues in obtaining coverage, it is best to consult with a homeowners’ insurance attorney in the event your claim has been denied on the basis of running a home business.
If your standard homeowners’ insurance policy will not provide coverage in the event you rent out your home or a room within it, you should look for alternative types of insurance. Those who live in the home and rent out a space within it may obtain unit rented to others coverage. You can also seek a landlord’s insurance policy which will cover your short term guests who are injured on the property or your home if a guest damages it.
Greenberg, Stone, & Urbano: Put Our Over 130 Collective Years of Experience to Work on Your Case!
If you have a homeowners’ insurance issue related to renting out your home, contact the Miami Homeowners’ Insurance Attorneys at Greenberg, Stone & Urbano. We have over 130 collective years of experience representing homeowners across South Florida. Our firm offers the dedicated, knowledgeable, and caring representation you need to obtain the insurance compensation you deserve. We are honored to have received a coveted AV rating from Martindale Hubbell and the Miami Herald’s ranking as a top firm in South Florida. Put our extraordinary homeowners’ insurance lawyers to work on your case. Call us at (888) 499-9700 or (305) 595-2400 or you can visit our website to schedule your initial consultation.