Insurance Needs for Short Term Rental
While we are still waiting for clarification on some points of the new Short-Term Rental Law, homeowners that are in the process of renting need to comply with the insurance requirements now. Does your policy carry the $1,000,000 in required liability?
There are many ways to purchase the $1,000,000. You can increase your underlying liabilty. You can purchase an umbrella or excess policy, or you can secure a Commercial General Liability policy. Of course you want to get the best policy/coverage at the lowest price, but not every policy fits every circumstance. There are also some endorsements you need to make sure are on your homeowner or dwelling fire policy as well, to guarantee there are no gaps in coverage.
As we move through this new legal requirement with our insureds, we are discovering that trusts and LLCs are complicating how you secure this coverage. Also not all insurance companies have the intent of covering over rental risk or covering over entities other than individuals. We are encountering many national carriers simply washing their hands of these rental properties.
Securing coverage in some situations is quite easy, others take a bit more consideration. Eldredge & Lumpkin will be reaching out to all our insureds, but if you need this resolved before you hear from us, give your customer service representative a call at 800-945-1840.