Tom's Blog
What You May Not Know About Insuring Your VRBO or Airbnb
If you rent your home or a room to others, you might think your N.C. homeowners insurance policy provides enough property and liability coverage. However, what many don’t realize is that N.C. homeowners insurance often excludes coverage for vacation rental activities. Before you continue renting out your property, it’s important to review your N.C. policy’s provisions, conditions, and exclusions, and discuss your rental activities with a local N.C. independent insurance agent.
Facing a coverage denial for something you thought was covered can be financially devastating, especially if you’re left paying for damages out of pocket. Your independent insurance agent can help by reviewing what is covered and excluded under your home or vacation rental policy and working with you to tailor the right insurance protection for your specific rental needs.
Vacation Rental Insurance
Since N.C. homeowners insurance excludes “business activity,” you’ll need either a N.C. business insurance policy or a commercial rider to ensure your property is properly insured. The type of insurance required depends on how frequently you rent out your property.
Occasional renters might only need a business rider, while regular renters will likely require a N.C. broad coverage commercial insurance policy. The difference between “occasional” and “regular” can vary, but in general, a rider covers rental activity for 30 days or less. If you frequently rent out your property for short-term stays, it’s crucial to confirm the details with your N.C. independent insurance agent.
Get the Right Insurance Protection Today
Renting your property can lead to lawsuits and financial problems if you don’t have the right N.C. insurance protection for your vacation rental. You may also want to consider a business umbrella policy, which provides extra liability coverage to protect against injury claims at your rental. Contact Paramount Insurance Agency today at 336-869-3335 to discuss your rental activity and secure the right business insurance protection for your needs.
