Are you renting your home out on a short-term basis as a vacation rental? Do you know your home insurance policy may not cover it?

Putting your home up as a vacation or short- term rental has become very popular in the Flathead Valley. As with all things pertaining to insurance, it is vital to ensure your policy covers these types of unusual circumstances.

Business and personal insurance are not the same

Circumstances that generate income are classified as business exposures. Business and personal insurance do not mix so it is vital to get more information in these types of scenarios. Most standard home insurance policies do not cover short-term rentals.

How can I ensure my policy covers short- term rentals?

The great news is that personal home insurance is coming on board to provide insurance for short term rentals. It is now much easier to insure than it was in years past. The important thing is to let your agent know and they can review your options. Montana First has several home insurance policies available for short-term rentals. Check with an agent to find a policy.

Is it expensive to get a home policy for a short-term rental or VRBO?

Most people think insuring for a VRBO will be much more expensive, but it is generally pretty inexpensive. You will find that the income from your short-term rental will typically more than cover the cost of the insurance.

As always, be sure to talk to you agent to review your options.  There is no ‘one size fits all’ insurance.  Before renting out your home, review your policy to make sure you understand the coverages and exclusions.