In Maryland, city officials of Montgomery County all voted to pass new regulations for vacation rentals back on October 10th. The regulations are designed to prevent business owners from operating a “hotel-like business” within the residential districts while respecting homeowners who do list their property on short-term rental websites.

According to the ordinance, only primary residents can rent out their homes on services like Vrbo, which effectively prevents business owners and large rental companies from buying up property and listing it for rent.

Other notable changes include a limit on the rental duration, a maximum number of guests permitted, and licensing requirements.

Why short-term rental insurance is so important

Unfortunately, the new regulations did not include requirements for commercial liability insurance or for any type of short-term vacation rental coverage. This is important because many hosts are unknowingly placing themselves at risk when renting out their property with only homeowner’s insurance. Homeowner’s coverage does not cover issues that arise from rentals because it falls under the business exclusion section of the policy. Often, what happens is that when a guest damages the home, the property owner will file a claim with their homeowner’s insurance only to be rejected and kicked off the plan for violating their contract.

Clearly, this is a huge problem and it leaves many homeowners exposed and at risk. If you plan on renting out your property on short-term rental platforms, make sure you’re adequately covered or you could be facing a claim you simply can’t afford.

Proper Insurance custom-penned their insurance policy with Lloyd’s of London to offer coverage to short-term rental hosts. The policy includes coverage for building, contents, income, and liability ($1M/$2M commercial general liability with an additional $1M personal liability if their home is also their primary residence). Proper’s goal is to educate hosts and protect them and their businesses in the competitive short-term rental industry.

Call Proper today to discuss their comprehensive insurance policy – (888) 631-6680!

5-Minute Quote

Subscribe To Our Blog:

Want to stay up to date on short-term rental news, regulations, and more? Simply subscribe for blog updates.