Noted & Quoted: Buying and renting out a vacation home for fun (and maybe profit)
July 20, 2016
Peter connected recently with Jon Gorey to discuss AirBNB and vacation homes in his article Buying and renting out a vacation home for fun (and maybe profit) (Original PDF)
Here is anexcerpt:
The Web is awash in Airbnb horror stories that could turn your daydream into a nightmare, from stolen paintings to a drug-fueled orgy that destroyed one New York host’s apartment. Such incidents, though rare, illustrate the need to examine your insurance coverage before attempting to rent out any home, says Peter MacDonald, owner at Murray & MacDonald Insurance Services in Falmouth and Bourne. “Homeowners insurance has some gaps when you’re being compensated to rent out your property,” though some policies allow you to rent out a home up to four weeks a year. MacDonald suggests asking your insurance agent about a dwelling policy, which may cost about 10 percent more than typical homeowners insurance but is better suited to short-term rentals. Also keep in mind that many properties on the Cape (if they’re financed) require flood insurance, which can be more expensive on second homes. Meanwhile, Airbnb now offers US hosts $1 million in damage and liability protection at no cost, while HomeAway offers a custom homeowners policy through specialty insurer CBIZ.