Reviewed and updated 7/15/2020

Back in 2015, the West Hollywood city council passed legislation that banned all short-term rentals that last fewer than 31 days. According to the city council, short-term rentals are contributing to the problem of rising rent rates in West Hollywood. In addition, the city has received hundreds of complaints by people upset with the rentals. – likely due to partiers and excess noise.

The proposed legislation would require hosts to be present during the rental and pay a hotel tax among other requirements. Unfortunately, there’s nothing in the legislation that would require hosts to maintain vacation rental insurance.

Update: The city lifted its ban on short-term rental properties, and instead requires hosts to secure a permit in order to operate legally. The property must also be your primary residence, as the city wants to avoid apartments being turned into a de facto hotel. The short-term rental permit is an initial $100 with a $50 renewal fee.

Why short-term rental coverage is important

Because standard homeowner’s insurance does not cover short-term rental situations, many hosts are exposing themselves to liability and the risk of property damage. If a guest were to damage your property and you didn’t have insurance specifically for property rentals then you’ll likely be the one who pays the bill. This also applies to liability issues such as if your guest injures themselves on your property. Even if it was only an accident, your guest could pursue you for damages – a process that could cost you tens of thousands of dollars.

By requiring hosts to maintain short-term rental insurance, it helps provide a barrier of entry into the rental business and ensures property owners will take their responsibility as hosts seriously.

Call Proper Insurance today to discuss their comprehensive insurance policy for short-term rental businesses – (888) 631-6680!

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