Would you rent out your home or property to a stranger to make a little extra cash? While the idea may still seem foreign to many, new internet based social sharing companies have helped millions of property owners do just that, and the reception has been positive from both property owners and lodging seekers. But when it comes to renting out your home for profit, there are a number of issues which arise in terms of loss, risk and liability exposures. Insurance providers, legislators and property owners are looking for clarity on the matter.
The emergence of the so called “sharing economy” has caused quite a number of legal and liability concerns when it comes to cooperative property use and sharing. While Uber and other vehicle sharing projects are still facing legal complications around the world, legislators are now targeting web based home sharing and property rental operations such as Airbnb and HomeAway.
In New York, the Attorney General has been cracking down on property owners who routinely rent out multiple units for short periods of time. Legislators claim that property owners who engage in such activities are essentially operation illegal hotel/ motel operations outside of New York law. Residents of most New York apartments are prohibited from renting out their properties in their absence for less than thirty days, which has law enforcement and property managers involved in issuing warnings that subletting may breach the terms of tenancy and risk the security of all residents and citations to chronic policy violators. Other municipalities have reacted differently, lifting bans of tenant subletting restrictions and adopting new policies to regulate this growing business. In San Francisco, the property owner must obtain a business license and permit before letting out their properties. Property owners must also hold at least $500,000 in liability insurance for each listing and must pay city hotel taxes for all rentals.
When it comes to protecting private property in the scenarios, against claims of damages, theft and other losses insurance providers are currently left to set their own policies. Some insurance companies have agreed to extend the homeowner’s coverage to the renter for a single occasion as long as they are notified in advance. However, most feel that if the property is to be rented out on a more regular basis, the property owner should obtain landlord or rental property insurance coverage to protect their own assets.
If you are thinking about renting out your property, it is vital to discuss your intentions and your Hartford Property Insurance coverage with a qualified Connecticut insurance agent. At the Byrnes Agency, we can help you cover your property loss and liability exposures and mitigate risks with a competitively priced Rental or Investment Property insurance plan. We specialize in helping Connecticut property owners find quality insurance solutions at affordable prices to ensure that their assets are protected. To learn more about our operation and our policies, contact us today.