Reviewed and updated 7/21/2020:
Until recently, the Indianapolis suburb of Carmel had strictly forbidden the use of second homes as short term rentals. In addition, restrictions for residents listing their primary homes on rental websites like Airbnb, HomeAway and VRBO were firmly enforced. A newly proposed bill would heavily limit the authority of cities and counties to determine homeowner’s use of their property has been approved with a 73-19 vote by Indiana lawmakers and is currently under review by the Governor, Eric Holcomb.
The bill’s sponsor, Republican Rep. Matt Lehman stated that “This legislation reflects the perfect balance of individual property rights and government oversight,” as it would grant homeowners across the entire state the right to rent out their primary residences through online vacation rental platforms. Lehman also commented that “[He] look[s] forward to the governor signing this bill into law and making a national statement that Indiana is open for business.”
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.
With Indianapolis ranking in as Airbnb’s number one trending city, the approval of the bill will surely bring in tourists and commerce, not only to the capital, but also surrounding areas like South Bend, Bloomington, Fort Wayne and Evansville. While some residents in the wealthy area or Carmel support restrictions on vacation rentals argue that short term guests cause safety concerns, noise disturbances and other violations in neighborhoods, Laura Spanjian, Airbnb’s Midwest policy director, mentioned in a statement that “the presence [of short term vacation rentals] have boosted the tourism industry” in Indiana.
According to an Indiana lawmakers article, “If Holcomb signs the bill, Indiana will become the fourth state — following Florida, Idaho and Arizona — to protect short-term rentals under state law, said The Travel Technology Association, a Virginia-based advocacy group.”
Is your short-term rental also your primary residence?
If your short-term rental is also your primary residence, you need to make sure you have correct insurance coverage. A traditional homeowners policy provides you with personal liability, however, it doesn’t provide sufficient coverage for your business activity (i.e. your short-term rental). You also need commercial general liability.
The good news is, with Proper’s policy you can have both! Proper offers personal liability and commercial general liability when your short-term vacation rental is also your primary residence. With $1M/$2M commercial general liability and the additional $1M personal liability, you’ll have the perfect coverage for your personal use and the unique risks of operating a short-term vacation rental. Proper’s policy meets and exceeds local city requirements and provides the best coverage possible for your Airbnb or Vrbo.
Call today to receive a comprehensive quote (888) 631-6680!