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.
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.