The legalities are a work in progress when it comes to short-term rentals in San Francisco. But if you’re leasing any part of your property for fewer than 30 days via a site like Airbnb, it’s critical to have sufficient insurance.
Though Airbnb guarantees up to $1M for property damage, there’s no coverage for an extremely important item—personal liability. If a guest is injured on your property, you’re on your own.
What you need to have in place is a vacation rental policy, which includes coverage called “personal injury,” says Roger Larson of Larson Family Insurance. This protects you if a short-term tenant is injured during his or her stay. Larson says that many property owners assume they’ll be covered for personal liability on their existing policy. But liability on a primary home policy doesn’t cover any type of rental exposure.
Larson also clarifies that if you’re renting your condo, there’s no additional risk to the homeowners association. HOAs have commercial policies that cover the common areas.
Of course, the larger issue with short-term rentals is that properties in multi-unit buildings are very restricted by the city. And most HOAs don’t allow short-term rentals in their Covenants, Conditions and Restrictions (CC&Rs).
But if you’re listing your home on Airbnb anyway, be certain you have the right type of insurance.