In recent years, it has become increasingly popular to temporarily rent out residential space. This may take the form of any of the following:
Providing residential space to others for income turns the events into business transactions.Such transactions may cause issues under several areas:
Some insurance companies may allow a homeowners or renters policyholder to use their property as a short-term rental—assuming they have notified the company. Other insurers may require an endorsement (or rider) to the existing insurance policy in order to provide insurance coverage.
If you are considering renting your residence to others, you should take the time to make sure that it doesn't create either legal or insurance problems. Some jurisdictions require a license as a bed and breakfast operator to let out space. Besides licensing fees, there are other, related rules and regulations for operating as a bed and breakfast. Violation of such laws can result in significant fines.
Property Associations create rules that are intended to address fairness and safety among its members as well as to preserve unit value. Temporary rentals may be considered a breach of rules that could result in financial penalties and/or eviction.
If you are considering renting out your living space, take the time to make sure that you're not creating either legal or insurance problems. Discussing such coverage with an insurance professional is an ideal way to arrange for the proper amount and type of protection.