If you’re a short-term rental host in Lawton, you’ll want to read on to hear about potential changes coming down the pipe affecting hosts City-wide. You may notice an influx of visitors coming into town to watch the graduation ceremonies at Fort Sill, with families now often choosing to stay in comfy homes over a hotel. This is great for short-term rental business, however, enough concerns were raised for the City Planning Commission to consider adjusting regulations. They hope to preserve the personal feeling of the community by limiting the overturning of traditional homes into nightly rentals. The Short-term rental requirements being considered include the following:
- A short-term rental to be considered as a dwelling, portion thereof or accessory dwelling unit that is rented, leased or assigned for tenancy of less than 30 consecutive days.
- A required short-term rental license to be renewed annually with an accompanying fee
- Minimum age of renter at 21
- Maximum of two people per bedroom as the total number of guests in the structure
- A complete ban on serving of meals to guests or allowing cooking in bedrooms
By addressing short-term rentals concerns, the City hopes you may look at your business in a new light and consider how you can better protect your community while still making a profit.
Have you considered how your short-term rental business is insured? If you actively protect yourself, your business, and the community from nuisance guests, the City may take a more lenient approach to regulations.
For your reference, here is a list of scenarios we’ve witnessed with short-term rentals and how you can protect yourself against unnecessary claims.
Animal and pet liability
What if a renter snuck a dog to your rental and it happened to bite a neighbor? As the property owner, you’re always a named party in a lawsuit. The problem is this would be bodily injury off your premise and the cause would be in relation to your business. Not only do you need liability insurance that extends beyond your property line, but it would need to respond to business, short-term rental activity.
Personal and advertising injury
Short-term rentals are in the spotlight, which means you’re in the spotlight. With this in mind, personal and advertising injury coverage is simply a must. What we see are “invasion of privacy” claims from guests and neighbors. If it’s late at night, and your guest mistakes your neighbor’s home for yours, and walks in, you could be found legally liable. Unless you have personal and advertising injury, you don’t have coverage.
Liquor liability exclusion
People drink on vacation and even if you don’t furnish alcohol, insurance carriers are going to be hard pressed to respond to any liability claim involving liquor. Why? Because they all have a standard liquor liability exclusion. If your guest is intoxicated and assaults a neighbor, don’t count on having coverage unless the liquor liability exclusion is added back to the policy.
Verify your insurance coverage
These are scary scenarios, right? Instead of worrying if you’re covered, Proper recommends you send your agent an email, ask about the scenarios above, and request that he send his response in writing, answered by the company’s underwriter. You’re paying a premium for a contract, and you should be able to get these answers in a prompt, clear manner.
Are you covered? Ask today.
Give Proper Insurance a call today to discuss the must-have coverages for your short-term rental business. – (888) 631-6680!