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previous claims, provide child care in your home or have any
employees.
The New York homeowners policy defines the named insured
as “You and the residents of your household who are your
relatives or other persons under 21 in your care” and the
residence premises as “the one, two or three family dwelling
where you reside in at least one of the family units”. Obviously
with these definitions, a homeowners policy is not designed for
the AIRBNB use.
So what to do? One of the companies we represent, Sterling
Insurance Company, offers an endorsement in certain situations
that allows up to 3 months rental on a homeowners policy
form. I hear other companies are talking about how and if
they want to accommodate this situation or put clear exclusions
in the policies. A commercial or landlord’s policy form are
other options, but usually do not offer any personal property
insurance and if they do, the coverage might not be on a
replacement cost basis and has to be added by endorsement, or
even a separate policy may be needed, particularly if you have
any art, collectibles or antiques. So in most situations, there
are options to insure this type of use of your home, but it may
require an endorsement on your existing policy or changing to
a different type of policy, or policies, depending on what you
have to insure inside.
In my opinion, renting your house out on a temporary basis,
without notifying your insurance agent or company is risky
business. Your are taking a huge risk with your most valuable
asset. You may not have any coverage if there is a claim, or
you could be cancelled. Replacing a cancelled policy can be
more costly or you could be declined by many companies
due to their knowledge you rented out your house. At Karas
Insurance Agencies Inc., we represent more than 6 companies
for homeowners insurance and also have many companies for
landlords and commercial insurance. Since 1973 we have
been insuring homes in the Hudson Valley and beyond, both
North and South. We welcome the opportunity to provide
no obligation comparisons of cost and coverage against your
current coverage, provide quotes for your new purchase, or assist
you in replacing a cancelled policy, or change of occupancy
to a rental situation, by changing the type of policy you need.
We are located at 321 South Riverside Avenue, Croton-on-
Hudson, NY and can be reached by phone 914-271-5188 or
.
Cathy J. Karas, President - Karas Insurance Agencies Inc., 321 So
Riverside Ave, Croton-on-Hudson, NY 10520
Disclaimer: This article is for informational purposes only. For full
details on your own policy, contact your insurance broker or company.