Turning Your Home into an Airbnb? 5 Coverages You Can’t Skip!

Lake Mary residents considering renting out their homes on platforms like Airbnb to tourists drawn to nearby Orlando attractions should be aware of critical insurance coverages to protect their property and finances. While the allure of extra income is strong, local insurance agents emphasize that standard homeowner's policies often fall short when a property is used for short-term rentals.

"Many homeowners assume their existing policy covers everything, but that's rarely the case with short-term rentals," explains Sarah Jenkins, an independent insurance agent with Lake Mary Insurance Group on West Lake Mary Boulevard. "You're essentially running a small business, and your insurance needs to reflect that."

Experts highlight five essential coverages that Lake Mary homeowners should investigate:

1. Commercial General Liability: This protects against claims of bodily injury or property damage that guests might suffer while on your property.
2. Loss of Income Coverage: If your rental property becomes uninhabitable due to a covered event, this can replace the rental income you would have earned.
3. Property Damage Coverage: Specifically tailored for rental situations, this can cover damage caused by guests that goes beyond normal wear and tear.
4. Identity Theft Protection: With guests coming and going, the risk of personal information being compromised can increase.
5. Ordinance or Law Coverage: This helps cover the additional costs of bringing your property up to current building codes after a covered loss, which can be significant in older Lake Mary homes in established neighborhoods.

Local insurance professionals recommend speaking with an agent familiar with short-term rental policies before listing your home. "It's not just about protecting your investment; it's about protecting yourself from potential lawsuits," adds Mark Thompson, owner of Thompson & Associates Insurance on Primera Boulevard. "A quick conversation now can save you a lot of headaches and money down the road."

Residents are encouraged to review their current policies and discuss their plans with a qualified insurance provider to ensure they have adequate protection.