Short-term rentals continue to be a popular service, and CHES Special Risk has advised brokers to pay special attention to this growing line of business.
Online service rentals such as Airbnb allow hosts/landlords to generate additional income on the side, by renting out their properties to students, travellers, and those looking for a temporary place to stay. Hosts/landlords, however, may be unaware of the unique exposures of short-term rentals, and that their regular homeowners’ or condo insurance policy will not cover commercial use.
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Brokers can address this coverage gap with the help of CHES Special Risk; the managing general agent said in a release that it has expertise in designing specialist insurance to serve the needs of evolving business landscapes.
According to CHES, its short-term rental insurance features liability limits up to $5,000,000. It features a named perils form with various limitations and exclusions, and can cover for loss of rental income. It is also a flexible product, as end clients can choose to purchase building owners and/or tenant contents only, and they can also secure insurance for multiple properties and/or multi-room units in one policy. The coverage underwritten by the MGA can cover international students, as well.
In addition to the short-term rental offering, CHES said that it can also offer a comprehensive buildings and contents package, which includes fixtures and fittings, liability, loss of rental income coverage, as well as support with criminal record and credit referencing check services.
