If you are in the business of renting your home or a room to others, you may consider your N.C. homeowners insurance policy adequate for property and liability coverage; but what you may not know about insuring your VRBO (Vacation Rental By Owner) or Airbnb, is that your N.C. homeowners insurance excludes coverage for vacation rental activities. Before you continue to rent your property to others, you should familiarize yourself with your N.C. policy provisions, conditions, and exclusions and discuss your vacation rental activities with your local N.C. independent insurance agent.
Being faced with a coverage denial on a scenario that you assumed was covered can be detrimental to your financial well-being and can leave you in dismay when you are faced with paying for damages out of your own pocket. Your independent insurance agent works for you and with you to discuss the terms and conditions of what is covered and what is excluded towards your home/vacation rental and can devise the right type of insurance protection to meet your unique specific needs for your vacation rental activities.
Vacation Rental Insurance
Because your N.C. homeowners insurance policy excludes “business activity”, you will need to secure either a N.C. business insurance policy or a commercial “rider” to ensure your property will be properly insured. People who rent their homes or a room in their home may do so on varying levels so a different insurance policy may apply depending on how often you rent to guests.
An occasional renter may only need a business “rider”, while a regular renter may need a N.C. broad coverage commercial insurance policy. Of course, what constitutes “occasional” versus “regular” may be subject to interpretation, but usually a rider is designed to cover rental activity to others for a period of 30 days or less. If you are a short-term vacation property renter, make sure you verify this with your N.C. local independent insurance agent.
Get the Right Insurance Protection Today
Renting out your property to guests can lead to a hefty lawsuit and financial disaster if you don’t have the right type of N.C. insurance protection suited for your vacation rental activity. In fact, you may even wish to consider a business umbrella policy that provides an extra layer of liability insurance protection to safeguard you against injury claims resulting from anyone injured while at your vacation rental. Contact us TODAY at Twin City Insurance Agency at 828-464-2643 regarding your specific vacation rental activity so that we can provide the right type of business insurance protection for your needs.