A property that is rented for less than 30 days at a time is typically considered short term. It is normally a residence in which the renter does not live on a permanent basis.

Short Term Rentals are considered a business activity. All homeowners policies carry a “business activity exclusion”. Accordingly, if your short term rental was covered by your homeowners policy and you had a claim, it could legally be denied.

Yes. More and more cities like Austin, Santa Barbara, and Chicago are now requiring short term rental owners have a business license for this activity.  For example, in February 2015, San Francisco passed a law requiring that all short term rental owners pay a 14% hotel tax and carry $500,000 in liability coverage.

Your short term rental insurance is a business insurance policy. It covers your building(s), contents, business liability, and business income.

Yes. There are no standard occupancy restrictions on a business policy. This means the property is insured while you stay there – or when friends, family or paying guests are there.

Yes. If the short term rental home is also your primary residence, it might be a good idea to purchase additional personal liability coverage and loss-of-use coverage. This is very important if you do not carry a homeowners policy.

No. The short term rental policy is designed to fully replace the current coverage you have. You would cancel your current policy.