In order to answer my question whether home insurance would cover a home on Airbnb or VRBO, I talked with underwriters from each of the companies I represent. Each underwriter gave me the same answer, that their home insurance policy would not cover a loss if the homeowner is providing temporary lodging via any of these services. The reason is there is too much risk exposure for the home insurance company for any type of loss.
What’s your guess for the car that is number one in getting ticketed the most? A bright red or black sports car such as a Nissan 350Z, Audi TT, or BMW M Series? Maybe an exotic like a Lamborghini, Ferrari, Lotus, or McLaren? Perhaps a more common Mazda M5, Camaro, Mustang, or Corvette? If any of these cars were your top pick, you’d be wrong.
I received a call last month from an investment property owner. He’d bought a duplex in Houston earlier this year as a rental property and had a question about the insurance he’d originally purchased from another agent. Even though he had only bought one side of the duplex, he’d been told most carriers required both sides be covered in order to write a duplex insurance policy. He wanted to know if that was correct.
I’m working with a number of clients who are parents of teens. They usually call me when their son or daughter is about to get their learner’s permit to ask several questions relating to their car insurance policy and their teen who’s about to drive. The questions include when they have to add them to their car insurance policy and does it make a difference whether they do the classroom or parent led driver training. The brave parents want to know what it will cost to add their teen driver to their car insurance policy when they get their license!
Home insurance companies provide a number of discounts. There are discounts for married couples, retired couples, homeowners with monitored alarms, new roofs, newer homes, updates to plumbing, electrical, and cooling systems, and for placing your car insurance with the same company too. In most cases, these discounts are given for something you do or have, not for giving something up. The home insurance discount Dave wrote about though was for something a policyholder gives up.
Car insurance companies have offered discounts for a variety of safety technologies for over 20 years. Early on these discounts were for anti-lock brakes and driver side airbags. The discount for airbags shifted as airbags moved from protecting the driver only, to both the driver and front seat passenger, to side impact and curtain airbag configurations to protect against head trauma. Some insurance companies even offered discounts for cars equipped with daytime running lights because they were easily visible to other motorists on the road.
