Reviewed and updated on 6/29/2020

If you live in the city of Carmel and are looking to utilize a service like FlipKey or Airbnb to list your home, bad news; the city board mailed out notices in January that short-term rentals violate zoning laws.

Mayor Jim Brainard expressed concerns about how short-term rentals could affect property values and the potential negative impact they’ll have on the hotel business within the city.

But all hope is not lost – the city appears to be weighing options other than a total ban, such as introducing new regulations that would permit short-term rentals if property owners maintain adequate vacation rental insurance and followed certain requirements.

Update: According to Indiana State House Bill 1035, cities can’t prohibit you from operating your short-term rental, however, city-specific requirements may apply. In Carmel,  hosts like yourself must submit a “Special Exception Application” through the board of zoning appeals for your short-term rental. To be eligible, the home must be your primary residence. 

Short-term rental insurance for your primary residence

Across the US, properties are being converted to full-time short-term rental properties, often homes that serve as a host’s primary residence. As short-term rentals come with immense property and liability exposures, it’s important that you make sure you have the best insurance coverage to protect your business. Traditional homeowners policies exclude coverage for “business activity” (i.e. short-term rental), meaning, the policy you currently have may not be enough.

With a policy from Proper Insurance, you will have comprehensive short-term rental insurance to cover your primary residence or investment property. Proper provides coverage for building, contents, income, and liability ($1,000,000 commercial general liability and an additional $1,000,000 if the property is also your primary residence).

Call Proper Insurance today to discuss the best policy for your short-term rental business – (888) 631-6680!

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