For those of us living in the Bay Area, who are anticipating a certain craziness that comes with being the Super Bowl Host community, the idea of renting our house out to visitors for the week of the Super Bowl could seem extremely opportunistic! Figures like $5,000-$6,000 dollars rent for your home over that week leave one imagining a fully paid vacation to Hawaii, while escaping the traffic, and tourist crowds that can be expected during that grand event.
But, are you aware that all the major “Admitted” Insurance carriers would exclude coverage for your homeowners if you rent it out to guests? That means you would be on the hook for any damages to your property caused by your guests, and if they caused damages to others (let’s say, you rented your house out and your Renters threw a party, and one of attendees hurt themselves), your Liability coverage would again not apply. You are putting yourself at risk of claims for Hundreds, Thousands, or potentially Millions of dollars!
Now, think about the typical market for that weekend… Probably males, on a “Guys Weekend”, who will be doing some drinking, and whatever else they like to do on a “Guys Weekend”. Not a quiet family group looking to visit the Bay Area. Even Airbnb’s insurance promises protection only for your property loss, and that is “actual cash value” protection-meaning depreciated coverage. So, be aware of the risks you are assuming if you want to “cash in” on the Super Bowl. It could cost much more than it’s worth!
There are only a couple of “non-admitted” carriers who do offer Homeowners coverage for Short Term Rentals, but these are more expensive and require more paperwork. We do have access to that market so if you are interested give us a call, Trowbridge Insurance Agency 650-876-9600.