Proof of Commercial Liability is a common requirement for owners to obtain a permit. Premise liability, and personal liability do not suffice, so owners are looking for commercial coverage that can replace their homeowner’s or DP dwelling policy.
A standard homeowners’ policy will not provide coverage for a short-term rental! This is because a short-term vacation rental is considered a business, even if the owner stays in it themselves.
A short-term rental is considered as business activity exclusion so if an accident or injury was to occur on the property then the standard homeowners’ policy can deny the claim.
What if a guest was injured while staying at your client’s rental property? What if your client’s house guest destroyed or causes damages to their property?