Do you know someone who rents out their home through short term rental sites like Air B&B or VBRO? Or, are you considering doing it yourself? If so, a consideration will be whether the homes are located in a primarily residential  neighborhood, that is not normally considered a vacation type area.

As some cities vote to ban this practice, one of the big questions for people thinking about renting out their home is “will the homeowner insurance be affected if there is damage to the home or a liability claim ensues while the home is rented”? People need to know that every insurance company has their own set of rules and policies for coverages. Some may allow a certain amount of days to rent out a home but many companies deny coverage due to the fact that the home is being rented as a “business pursuit”.  We recommend that if you are considering renting out your home for short-term rental income, you need to check with your homeowner insurance carrier/agent to see if your policy will allow for this and if coverage would be in force during the time the home is rented.  Again, every carrier has different criteria for coverage.