San Mateo County revisited short-term rental regulations which will affect hosts like yourself in Burlingame among other cities. Requirements include a short-term rental permit for your business and proof of liability insurance at a minimum of $500,000. You must also comply with Transient Occupancy Tax requirements. The county hopes to preserve its traditional neighborhood feeling, and is addressing strategies for accountability which include the following details:
- Local contact person
- Liability insurance requirement ($500,000)
- Safety requirements
- Required record keeping by owner/host
- Permit revocation and “blackout” period
Visit the San Mateo County government website to read the full ordinance and find more details for your short-term rental business.
Why it’s important to define “liability insurance”
With the explosive growth of short-term rental properties found on websites such as Airbnb and Vrbo, communities are struggling to find common ground regulation. Many communities have already passed ordinances and laws with which all have some type of insurance requirement. However, simply stating “liability insurance” doesn’t accomplish much as there are three types of liability coverage one can purchase in the open market: personal liability, premise liability, and commercial general liability.
Too often personal and premise liability won’t suffice for short-term rentals as they both hold a business activity exclusion (i.e. short-term rental business). On the other hand, commercial general liability is readily available for purchase in the open market for short-term rental owners and provides coverage for business activity. When you hand your keys over to guests in exchange for payment, you’ll want to make sure you have the correct coverage for any accident that might occur relating to your business (dog bite, slip and fall, amenity related injury, etc.).
Proper Insurance leads the nation for short-term vacation rental insurance with over 50,000 policies written in all 50 states. They would be happy to provide you with a comprehensive quote for your vacation rental scenario.
Do you have questions on coverage? Want to verify your insurance today? Call Proper today to discuss – (888) 631-6680!