AirBnB: Questions You Should Ask Before You Rent Out Your Home

A lot of events happen in our area: The Brimfield Antiques and Collectibles Show, the Patriots in the
play-offs, college graduations (20+ in Central MA within a 30-mile radius). All these events are tempting times to make a little extra cash by renting out your home on sites like AirBnB. But do you
know the risks and liabilities? Do you know exactly what your homeowners policy covers?

If you rent out your home for a one-time event, you may be covered, according to the Insurance Information Institute (III), but different insurers have different requirements. Some may require advance notice; others might want you to purchase an endorsement (an add-on) to your homeowners policy to provide broader coverage for the renter. (III)

Or, if you're planning to rent your home for short periods on an ongoing basis, (e.g., all three Brimfield show weeks) some insurers may consider that a "business" and require you to purchase
business insurance. (III) And, if you're planning to rent your home for a longer period of time, say six
months, you will likely need a landlord policy. (III)

Now, let's talk personal property . . . of a paying guest, that is. Is their personal property covered by
your homeowners insurance policy? Most likely not. The property of a paying guest would not be covered by a typical homeowners policy. If something, such as a fire, occurs while the paying guest is staying in your home, their own renters or homeowners policy may cover the loss of their personal property.

And what about your personal property? What if a paying guest steals your property during their stay? Sorry, but you likely won't be covered by your homeowners insurance either. There are typically exceptions on a homeowners policy for theft that takes place in the part of a residence being rented to a paying guest.

Oh boy…what if my guest injures somebody or causes damage to a neighbor's property? Does my
homeowners insurance cover that? (Cringe) Most likely not. While the liability coverage of your homeowners policy typically does protect you from financial loss if you're legally obligated to pay for another person's injuries or for damage you do to their property; it will typically not extend to a guest.

If your paying guest was responsible for another person's injury or property damage, they would
need to look to their own renters or homeowners policy for liability coverage.

Okay, but what if my guest damages my own property? Surely now I would be covered. Don't hate me, please, but your policy most likely won't cover these types of damages, either. Your homeowners insurance won't likely consider a broken television, for example, a "named peril." And to
add salt to this wound, most homeowners / renters policies exclude property damage to a rental
property.

So what precautions should you take before renting out your home, even for one day? First and foremost, call us. We will help you to understand what your existing homeowners policy may or may not cover, what exclusions might apply, and if an endorsement is necessary.

We recommend, too, that you do your due diligence. "Do a thorough interview of anyone before giving them access to your home. Most home sharing sites offer a screening service that gives you an overview of a candidate's background, but you likely want to go further, asking for identification, doing reference checks, asking for deposits (much like you would do when taking on a rental tenant as a landlord). You might also require any paying guests to have their own homeowners or renters insurance policy; check to see what their policy covers (liability, for instance) and consider whether their insurance is extensive enough to help you avoid any undue risk." (nolo.com)

(Sources: https://www.airbnb.com; http://www.nolo.com/legal-encyclopedia/insurance-questionswhen-renting-out-your-home-short-term.html; http://www.iii.org/article/what-type-of-insurance-do-i-need-ifim-renting-out-my-home)

Protect Your Family During Severe Weather

Did you know that March is Severe Weather Preparation Month?

While it may still feel like winter outside, it won’t be long until spring arrives. And with it comes spring storms! Is your family prepared?

Spring weather will be here before we know it! And now is the time to think about protecting your home and family.

First things first, make sure you have designated a safe place to go to if the weather gets severe. It could be a basement, closet, or room with no windows or outside walls. Make sure this space is cleared out enough that you could easily get your family (and pets) inside if needed. (You don’t want to be frantically clearing out the closet if there is a tornado!)

Next, put together a small emergency kit. What would you need if the power was out? Consider putting in flashlights, extra batteries, canned food, a weather radio and plenty of water. (Don’t forget supplies for your pets too!)

Keep emergency phone numbers in your cell phone contacts, including the phone number for our office (508-347-9343) in case you need to make a claim. You could even save a note in your phone with your policy numbers too.

If you do suffer damage, give us a call to report a claim once the danger has passed. We’ll do everything we can to make the claim process simple and quick!

While we can’t prevent bad weather, it’s always great to be as prepared as possible. Take care of your family first and know that we’ll be there to protect your belongings.  

Insurance For Newlyweds

February is one of the busiest times of the year for engagements and weddings. And if you’re planning to tie the knot soon - congratulations!

Now it’s time to think about what this means for your insurance! When you get married and combine two households, there are some important insurance things to think about. Let’s go over some of the most common (and often overlooked).

Once you’re married, you’ll want to combine your vehicles onto one auto insurance policy. Bonus? Many times you’ll get a discount when you have multiple vehicles on one policy! If you only own one vehicle, just make sure to add your spouse to the policy.

Next you’ll want to make sure that you have renters or homeowners insurance in place for your new household. If you’re keeping your current residence, just have us add your spouse to the policy. If you’re renting and don’t have coverage, have us quote a renters insurance policy! You’ll save on your auto insurance PLUS protect all of those fancy wedding gifts!

And finally, have a conversation about Life insurance. No one wants to think about this important coverage but if you’re planning to start a family or if your spouse depends on your income, then now is the time to get it started. We can quote an affordable life insurance policy to protect your new family.

None of this is time consuming or difficult! In fact, it can usually be done in one short phone conversation. Call us today at 508-347-9343 to discuss your policy!