Are you one of the millions of Americans that have tried out Airbnb or another similar home-sharing program? If you own a second home or a rental property, the idea of renting out your space temporarily may have crossed your mind once or twice over the past few years. But what does it really take to become a short-term host or landlord in Wisconsin? Before you give hosting a try, be sure to keep in mind that it requires plenty of time, energy and even some changes to your home insurance coverage. Still think you might want to take the plunge? Consider these important factors before you hand over your keys to your first set of visitors.
What Should I Know Before Becoming a Host with Airbnb?
Whether you plan on renting out part of your home or the entire space, if you’re hosting short-term guests you’ll need to take a close look at your current home insurance policy first. Chances are, your current policy will not cover any damages incurred by your renters, so it’s a good idea to speak with your independent insurance agent before getting started with the rental process.
While you may be offered coverage with Airbnb or a similar hosting program, these types of policies usually come along with a number of different limitations, exclusions, and conditions. As you open your home up to a revolving door of guests, investing in the best insurance policy possible is the best way to give yourself peace of mind.
Landlord Insurance
Even though you may not think of yourself as a traditional landlord, under legal terms that’s exactly what you’re becoming. So before you list your home for rent online, be sure to speak with your insurer about landlord insurance. Landlord Insurance essentially protects your home, other structures on the property, your personal possessions and loss of rental income in the event of an accident or other damages. While less extensive than a traditional home insurance policy, it will provide an extra layer of protection for your vacation property.
Other Important Considerations
Taking on another insurance policy can be a big financial step, so it’s always a good idea to weigh out the pros and cons of becoming a landlord first. If you’ve been thinking about renting out your home to make some extra cash on the side, consider these additional factors as well:
Shared Space?
Will you be renting out a portion of your home? If you plan to simply rent out a few rooms while staying in another part of the house, keep in mind that you’ll be living with complete strangers. While this may be an exciting idea for some, if you aren’t ready to get to know lots of new people, this may be more of a headache than a fun source of income.
What About the Neighbors?
Are your neighbors okay with the idea of you running your own mini B&B? If you haven’t reached out to your nearest neighbors to let them know about your plans, you should do so well before you put up an ad online. While they may be okay with the changes, there’s still a chance that your HOA or county may have restrictions put in place to prevent short-term rentals, so be sure to do your research as well.
Want to make sure you have the right level of insurance protection to cover your home and other assets? Contact Wolfgram Insurance for more information and be sure to request a free quote today!
