Carriers that Will Write Homes Used in Airbnb/VRBO?

[TwoLabs]

I have an existing insured with a primary and weekend home. He's toying with the idea of renting out the weekend home on Airbnb when they are not using it.

The current carrier, not surprisingly, says it is not covered. I've called Safeco and they are the same.

Does anyone in Texas have a market that will cover a risk like that? Am I just going to have to go surplus lines and get a commercial property policy?

Thanks!

 

[adjusterjack]

You shouldn't need surplus lines or a commercial policy. Treat it as a rental house. Standard carriers could write a DP-3 Dwelling Property Special Form on the property. Make sure it has the optional vacancy endorsement.

Then add the Additional Residence Premises Rented to Others endorsement to his homeowners policy.

He'll pay more for it and won't have all the pretty trimmings that a homeowners policy has but, hey, you want to make money off your house, you pay for the right insurance.

PS he will also have to file Schedule E on his federal income taxes to show the rental income and expenses from the rental periods.

 

[PandCagentCA]

The fact that the insured will put it on Airbnb as a vacation rental (weekend rental) is the reason why a standard market wont take it. Theoretically they could and I wish they would, but as soon as they find out Airbnb or vacation rental use specifically at any point in time, they will look to drop the insured. I'm assuming more risk prone to parties and so many different people in and out renting wise. Standard markets want a traditional rental home 6 month lease or intent to rent out for at least 6 months at a time. I'm in California and E&S has been the only option for me on the risk you have (but shouldn't need a commercial policy). I don't get them much though so I haven't looked long and hard for a standard market. Maybe someone has a standard market they can share, but just encase I wanted to share my findings.

 

[TwoLabs]

Just coming back to let future readers know what I found. Got a quote from Myron Steves with Lloyds of London. Dwelling fire form 3 policy, $200k on coverage A written as "short term rental", premium was about $2700.

 

[PandCagentCA]

Just found out Foremost will take air bnb and vaca rental or vacant homes. Give them a try.

 

[WolfpackAgent]

I have to write them E&S or Fair Plan w/ a separate CPL. Our company is starting to take homesharing in other states, but with the regulations in NC I'm not holding my breath.

 

[Andle]

Look up CBIZ Vacation Rental Program. Their program seems pretty flexible.

 

[cylon58]

Proper Insurance has worked with Lloyds to create a commercial policy exactly for this. I have written several policies with them. Easy to work with and they pay 15%. It's a good policy for Airbnb.

 

[JimmiDrums]

American Modern is a good admitted carrier that will write these. Foremost as well. We write a few of these per week.