Despite common homeowner disbelief, when it comes to renting your home out to others for any allotted period of time, there are insurance implications. A rental property is exposed to unique risks and vulnerabilities. When you choose to rent out your home for even a temporary period of time, you must obtain the necessary insurance coverage to protect your assets.
Many homeowners are starting to utilize peer-to-peer home rental sharing, as it is both convenient and cost effective to both parties. However, you may be putting your finances in harm's way when partaking in this unique rental opportunity. If peer-to-peer sharing is something you are considering, it is imperative that you seek approval from your insurance carrier.
Depending on how you approach the situation and the duration of your guests' visit, your insurance company will likely comply with your requests. If you are requesting that your neighbor stay in your home for two weeks, and inform your insurance carrier of the rental agreement well in advance, chances are that they will allow coverage to extend to the renter.
However, if you are regularly renting out your home and receiving cash reimbursement for the stay, your rental property becomes a business. Your standard homeowners' insurance coverage will not suffice in covering regular business on your property because it is designed to cover personal risks.
If peer-to-peer sharing is something that you may be interested in doing, you must contact your homeowners' insurance carrier immediately to discuss your coverage options. Failing to do so can prove to be consequential.
Contact Little & Sons Insurance Services for all of your California homeowners' insurance needs. We go above and beyond to work for you, and have been doing so since 1922. We can help guide you in your peer-to-peer sharing activities to ensure that you are complying with all laws and regulations.
Despite common homeowner disbelief, when it comes to renting your home out to others for any allotted period of time, there are insurance implications. A rental property is exposed to unique risks and vulnerabilities. When you choose to rent out your home for even a temporary period of time, you must obtain the necessary insurance coverage to protect your assets.
Many homeowners are starting to utilize peer-to-peer home rental sharing, as it is both convenient and cost effective to both parties. However, you may be putting your finances in harm's way when partaking in this unique rental opportunity. If peer-to-peer sharing is something you are considering, it is imperative that you seek approval from your insurance carrier.
Depending on how you approach the situation and the duration of your guests' visit, your insurance company will likely comply with your requests. If you are requesting that your neighbor stay in your home for two weeks, and inform your insurance carrier of the rental agreement well in advance, chances are that they will allow coverage to extend to the renter.
However, if you are regularly renting out your home and receiving cash reimbursement for the stay, your rental property becomes a business. Your standard homeowners' insurance coverage will not suffice in covering regular business on your property because it is designed to cover personal risks.
If peer-to-peer sharing is something that you may be interested in doing, you must contact your homeowners' insurance carrier immediately to discuss your coverage options. Failing to do so can prove to be consequential.
Contact Little & Sons Insurance Services for all of your California homeowners' insurance needs. We go above and beyond to work for you, and have been doing so since 1922. We can help guide you in your peer-to-peer sharing activities to ensure that you are complying with all laws and regulations.
