Tips for Homeowners Looking to Score During Big Game
NEW YORK, Jan. 22, 2014 /PRNewswire-USNewswire/ --Homeowners and renters looking to make extra money by renting out their homes to visitors in town to watch the Broncos play the Seahawks in Super Bowl XLVIII are urged to first contact their insurer, according to the Insurance Information Institute (I.I.I.).
"Before renting out all or part of your home, tell your insurer about your plans to make sure you're covered if your property is damaged or if someone is injured," said Jeanne M. Salvatore, senior vice president, chief communications officer and author of the I.I.I.'s Fine Print Blog.
This is the first time the Super Bowl is being held in the New York City metro area. As a result, the market for rental properties near the game's venue, Met Life Stadium in East Rutherford, New Jersey—just eight miles west of mid-town Manhattan—is red-hot. Peer-to-peer rental websites such as Airbnb are letting consumers tap into this demand, potentially earning a "postseason bonus" by making their homes available to the thousands of football fans and visiting Seattle and Denver faithful.
Some insurance companies may allow policyholders to use their property as a rental for a one-time, special occasion like the Super Bowl, as long as the insurer is informed about it ahead of time. Other insurers, while allowing this type of arrangement, may insist on other criteria being met, such as the homeowner acquiring additional insurance coverage.
Keep in mind that there are some insurers who will consider any rental of your home to be a business venture, requiring the purchase of a business policy—specifically either a hotel or a bed and breakfast policy—because a standard homeowners insurance policy excludes losses arising from the operation of a business.
"Technological advances have allowed for the growth of the sharing economy" said Salvatore. "But, if you participate, it is your responsibility to make sure you're adequately insured. And, if you are a renter also talk to your landlord or look at your lease to make sure you are allowed to rent out your home.
- Peer-to-Peer Home Rental
- What Type of Insurance Do I Need If I'm Renting out My Home?
- What Is Covered Under a Standard Homeowners Policy?
- The I's on Insurance: Your Home Insurance Coverage
The I.I.I.'s free mobile apps can help you create a disaster plan, learn about selecting the right insurance for your needs and budget, and create and maintain a home inventory. Learn more about our suite of apps here.
THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
SOURCE Insurance Information Institute