Are you using your property as an Airbnb?

Are you using your property as an Airbnb?

We’ve had a few clients turn their rental property into an Airbnb and this is a mistake. Not all landlord insurance companies allow for “short term rentals”, which is what an Airbnb is. It isn’t the same party residing there for 12 months, 24 months or 3 years. With an Airbnb it is a constant turnover of people every 3 days, 7 days or couple of weeks.
So if you are thinking about turning your long-term rental into an Airbnb, make sure you consult your insurance broker. It always surprises me when a claim comes in and the client says “well I assumed it was covered”! Never, ever assume that especially when it comes to rental properties.
You invest hard earned money into rental properties for added income and appreciation, don’t let a claim ruin it. Have a good relationship with your insurance person, so they could properly advise you on coverages. We as insurance brokers never want to say “that isn’t covered” but rather, “let me get your claim into the insurance company”.

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