Host Insurance Program

The idea of leveraging your real estate for additional gains, being a host to visitors and meeting new people from around the world can be very exciting. More and more owners are turning their properties into short-term rentals. This is largely due to the unprecedented growth of property managers and short-term rental advertising opportunities on websites like Airbnb, VRBO, HomeAway, TripAdvisor, FlipKey, RentByOwner, BookByOwner, and more. At Commercial Coverage Insurance Agency, we understand the hosting market and have created a custom Host Insurance Program to replace your standard insurance policy. If you are hosting short-term rentals within your properties, your current policy may not accommodate this type of use. The Commercial Coverage Host Insurance Program (CHIP) will provide for coverage for both long-term and short term rentals within your properties.

Coverage Highlights

  • $1,000,000/$2,000,000 Host liabilities & landlord liabilities
  • Liability coverage continued to amenities including swimming pools and hot tubs
  • Property coverage of owner
  • Backup of sewers and drains
  • Loss of income
  • 3rdparty liabilities
  • Individuals, corporations, LLCs, and partnerships accepted
  • Commercial Umbrella up to $5,000,000 and more.• Commercial Umbrella up to $5,000,000 and more.
  • Owner-occupied OK, endorsements required.

Frequently Asked Questions

What is considered short-term renting? In the insurance world, a property that is rented for less than 30 days at a time is typically considered short-term. It is a property in which the renter does not reside at (live in) the dwelling.

Why doesn’t my homeowner’s policy cover my short-term rental? All homeowner’s policies carry a “business activity exclusion.” In other words, any claim involving a “business activity” could rightfully be denied.

Is my short-term rental really a business? Yes. More and more cities like Austin, Santa Barbara, and Chicago now require short-term rental owners to carry and pay for a business license. Note: Since February 2015, San Francisco Airbnb hosts are required to pay 14% hotel tax and carry $500,000 in liability coverage.

How do I get covered for business activity? You buy a business insurance policy. As the use of your property changes, your risk management strategy needs to be updated as well. Work with our advisors to get it right and take care of your business.

If I insure my short-term rental as a business, can I also stay there? Yes. There are no standard occupancy restrictions on a business policy. This means the property is insured while you, friends or family, and, of course, paying guests stay there.
 

My short-term rental is also my primary residence. Can I still purchase the CHIP policy? ? Yes. If the short-term rental home is also your primary residence, Proper simply adds $1,000,000 in personal liability and $50,000 in loss of use to relocate in the event the property is being rebuilt. This is very important if you do not carry a homeowner’s policy elsewhere.

What if I also live at the short-term rental, can I still purchase the CHIP policy? Yes. You have the same business exposure. We see every scenario imaginable. You live upstairs and short-term rent the downstairs. You live in the main home and rent out the guest house, etc.

If I have the CHIP policy, do I keep my homeowner’s or landlord policy in place? No. The CHIP policy is designed to fully replace the current coverage you have. You would cancel your current policy.