March closed with good news for short-term rental hosts in Lake Placid, New York. After much consideration and debate, the City passed regulations for short-term rentals allowing them to operate under set guidelines. Hosts like yourself must apply for a permit and register your property with Essex County. When applying you must confirm the following and more details:
- I certify I have notification from an insurance company acknowledging the property is used as a short-term rental.
- I certify all smoke alarms and carbon monoxide detectors are in correct working order and that the correct number of devices are installed per the NY State Building Code.
- I certify a working fire extinguisher is located in each cooking area and in close proximity to each open flame source.
- Owner supplied advertisement for the unit being considered for short-term rental.
Coming back to the initial point above, you may ask, ‘do I really need to tell my insurance company I’m short-term renting in Lake Placid?’
Why it’s important to verify your insurance
Yes, they need to know exactly what they are insuring. There are huge gaps between insuring a non-rental primary residence and insuring a short-term rental business. Your homeowners insurance would never cover a Hilton. Fundamentally, if you never gave your current insurer your online listing (Airbnb, Vrbo, etc.), then they didn’t underwrite for the business exposure at your property. If they don’t underwrite for it, chances are it isn’t covered.
Proper Insurance is the nation’s leading insurer of short-term vacation rental properties. With over 35,000 policies written, we have the privilege of working with hosts in all 50 U.S. states as they traverse the short-term rental industry and build a thriving business. Our primary goal is to educate hosts, and without the correct insurance coverage, your investment may go down the drain when it comes time to file a claim without the correct insurance for your business.
Call your current insurer today to discuss your situation. Send them your online listing, have their underwriter look it over and let you know if your insurance with them will respond to the business activity – many traditional homeowners policies exclude coverage for business activity.