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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 55301
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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Does my homeowners insurance change if I offer a room in my

Customer Question

Does my homeowners insurance change if I offer a room in my home for rent on AirBnB?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Richard replied 1 year ago.

Good morning. My name is ***** ***** I look forward to helping you.

Yes, you do want to address this in insure that you are covered in this event. You definitely need to contact your insurance company! If you are planning to rent out all or part of your primary residence for a short period of time, some insurance companies will allow you will simply consent to cover this short-term rental. Other companies will require an endorsement to the existing homeowners or renters insurance policy in order to provide insurance coverage. But, if you intend to rent for short periods, but on a regular basis, to various ‘guests’, this would be considered a business and your homeowner's policy would not provide any coverage for business activities conducted in the home. To be properly covered you would need to purchase a business policy—specifically either a hotel or a bed and breakfast policy. If you rent for a longer period of time, such as six months or a year, you will need a landlord or rental dwelling policy. Landlord policies generally cost about 25 percent more than a standard homeowners policy.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). I thank you in advance for taking the time to provide me a positive rating!

Expert:  Richard replied 1 year ago.

Just to follow up...I left a couple of words out of the first sentence...the words "order to" should be inserted between "in" and "insure." My apologies!

Customer: replied 1 year ago.
The house is under an LLC. Does that help protect against lawsuits?
Expert:  Richard replied 1 year ago.

Thanks for following up. It protects you personally, but if there was an uninsured claim, the assets of the LLC would be at risk....which would be your home. So, to protect against your home being at risk, you would want to keep it properly insured. Further, if you have a mortgage on it, the lender would require you to have the proper insurance on the home.