Tybee Island City Council has finally moved forward on short-term rental regulations after years of debate, as well as implementing a 90-day moratorium on short-term rental permits. This decision has stemmed from residents stating that vacation rentals are diminishing the quality of life and sense of community inherent in the residential neighborhoods. While on the other hand, vacation rental owners and management companies defend the business as crucial to the island’s economy and call claims of harm exaggerated or unsubstantiated. Within the new ordinance, there are regulations regarding insurance, application requirements, occupational tax certificate, and more.
NEW Short-Term Rental Insurance Requirement
The modified Short-Term Regulations Ordinance includes a new insurance requirement for all of Tybee Island, Georgia. It states that,
“Proof of liability insurance shall be required along with evidence that insurance company knows the property is being used as a STVR.” – Sec. 34-261. – Application. (C). (7).
Tybee Island, Georgia did the right thing in requiring liability insurance for all hosts, as well as outlining that your insurance company has to understand that you are operating a vacation rental. The primary reason for an insurance requirement is to ensure that short-term rental owners are properly protected from injuries or property damage and that’s why it’s crucial that your policy is tailored to short-term rentals. A normal homeowner’s policy would not provide you coverage if something were to happen at your vacation rental. All homeowner’s policies carry a ‘business activity exclusion’, and as a short-term rental operator, you are running a business. The second you would mention ‘business activity’ while trying to make a claim with your homeowner’s policy you will be denied and let to pay out of pocket. This is why Proper has designed a custom penned policy that’s dedicated to short-term rentals and will be there for you when an issue arises.
One of the biggest areas of risk exposure in the short-term rental industry is a liability. Liability risk applies any time you open your door to paying guests. If anything happens to your guests during their stay, whether it’s a slip in the shower or a fire in the suite, the owner becomes liable. That’s why it’s crucial to have this type of coverage for commercial operating, like Proper’s policy.
Short-Term Rental – Insurance Requirement Information
Cities that have started requiring insurance in order to operate your vacation rental are honestly looking out for your best interest as a host. They have seen numerous situations where a short-term rental owner didn’t have the correct coverage and ended up having to deal with the expensive situation themselves.
Commercial general liability is found in business insurance policies and protects the insured against claims of bodily injury or property damage they could be found legally liable for. It is the most comprehensive liability insurance one can purchase for short-term rentals.
Additionally, when defining the “proof” of insurance, cities or counties can easily require a “certificate of insurance” which is a standardized form to show proof of insurance to various interested parties, including banks, mortgage lenders, or in this case, cities or counties requiring owners to provide proof of insurance on the short-term rental application.
Quote Your Short-Term Rental Today
Looking to fulfill the Tybee Island, Georgia insurance requirement today with a policy that’ll protect you and your business from liability and damage claims? Proper Insurance leads the Nation in short-term rental insurance, with over 50,000 policies written in all 50 states. Backed by Lloyd’s of London and exclusive endorsements from short-term rental leaders such as HomeAway and Vrbo, Proper Insurance is built on world-class insurance coverage that meets and exceeds both city and lender requirements.