Do I need insurance if I register my house on a shared rental platform? Florida is one of the main tourist hubs in the world. Annually, the Sunshine State is visited by 137 million people. This vibrant market offers great opportunities for individuals engaged in short-term rentals, using platforms like Air BNB or HomeAway.
Some property owners participating in shared rental platforms believe they gain more profit than with regular renting. “You don’t need to have the house rented all year; just renting it three or four times is enough,” some argue.
The reality is that we live in a litigious country. If a tenant, who traveled to Florida to have a good time with their family, throws a big party, and someone gets injured in the pool or slips in the kitchen, the homeowner’s insurance won’t cover the injured person’s claim since it’s considered a rental.
To be protected, in addition to regular homeowner’s insurance, you need to have commercial insurance with sufficient coverage to address liability for damages or injuries your guests may suffer. Changing the property’s occupancy type also changes your risks.
In other words, since this is a business, you should have general commercial liability coverage, loss of income coverage, as well as coverage for protection against cyber damages.
Renting through these platforms can indeed be a very lucrative business, but you shouldn’t jeopardize the safety of your asset and your finances. Do I need insurance if I register my house on a shared rental platform?
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