Beginning October 1st, homeowners are now able to apply for a short term rental permit through the City’s Department of Permitting, Inspections and Enforcement to operate their Short Term Rental by a legal avenue.
The accompanying regulations for hosts include notifying their immediate neighbors of their intent to rent out their property, and the home must include certain functioning safety features such as smoke detectors, carbon monoxide detectors, and fire extinguishers.
Hosts may benefit from companies such as Dwell Safe, which provides a safety checklist offering rental safety solutions to help make every rental property safer for renters and homeowners. Speak with a Proper Insurance Account Executive to discuss the premium credit for properties with an approved Dwell Safe inspection.
Hosts must also provide the city with proof of liability insurance to the tune of $1,000,000. (Click here for a 5 minute online quote). This requirement echoes the Short Term Rental insurance constraint recently imposed in Virginia Beach.
Ultimately, the City is trying their best to ensure safety for the owners, their guests, and their neighbors. These regulations, while strict, are a good start.
Proper Coverage for Insurance Requirements
While Short Term Rental hosts may view regulations as an undue burden, Cities across the US are implementing regulations to maintain the personality and safety of their communities. Regulations, specifically insurance requirements, weed out unprofessional hosts, leaving the best of the best on the market.
It should be noted, along with Virginia Beach, Prince George does not define the type of liability insurance required. This may cause confusion when arranging for the proper coverage. Without the procurement of an umbrella liability policy, most personal liability coverage offered by traditional homeowner’s insurance policies rarely exceed $300,000 in coverage and typically excludes business activity. Proper Insurance recommends that cities define the type of liability insurance in the regulation to be “commercial general liability” as too often “personal” liability will not suffice for Short Term Rentals.
Discuss the new regulations with your agent and get proof in writing that your current coverage is sufficient for Short Term Rental activity and meets the liability requirement of your city. It has never been more important to verify your insurance.
Once you’ve talked with your agent, Call Proper to discuss their commercial package policy. Including coverage for building, contents, income, and liability ($1M/2M or $2M/3M), the policy is custom penned for Short Term Rentals and meets and exceeds local regulation requirements.
Call Proper Insurance today – (888) 631-6680! Be educated. Be successful.