Homestay Insurance is a business policy. Since renting out your property on a short-term basis is typically considered a business transaction, you need business insurance. Many Homestay hosts have more questions than answers after they contact a local insurance agent. This is because most local agents do not specialize in niche insurance, or niche business insurance.
Commercial General Liability is Included in Homestay Insurance.
When a guest rents your property, they assume they are renting a safe place, not different than a hotel really. What if the cleaning crew did not properly clean the bath tub and soap scum was present? If a renter slipped and fell in the shower on that soap scum, the Homestay owner could ultimately be found liable. For this incident, you would want to have commercial general liability insurance. Accidents happen and Homestay insurance can protect you for up to $1,000,000. A standard homeowner’s insurance policy could rightfully deny any claim involved with Homestay.