Rental Basics in 90069>Question Details

Laura Brown, Real Estate Pro in Melrose, Los Angeles,...

Our condo is let for vacations, Is separate insurance required in case occupants sustain an injury.

Asked by Laura Brown, Melrose, Los Angeles, CA Fri Jun 22, 2012

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Jane Peter's answer is to the point and a great answer. Licensed real estate agents know of insurance and policies and coverage, but we aren't licensed insurance agents.

Ask your insurance agent and do it now! If you are conducting business why aren't you figuring this stuff out on your own?!? Do you want to have your insurance policy cancelled, or a claim of injury denied because you didn't figure this stuff out PRIOR to conducting business?!? I'm sure you consider yourself to be a savvy business person . . .and yet . . . you open yourself up for huge liability. Amazing to me, simply amazing.
1 vote Thank Flag Link Sun Jun 24, 2012
That is something you will have to take up with your insurance company. It would certainly be wise to check what your coverage includes.
1 vote Thank Flag Link Fri Jun 22, 2012

First thing you should do is to check with your city to see if you are required to have a business lic or a special use permit. Some cities are considering not aloowing vacation rentals at all or they are approving them only for certain parts of the city. So, make sure you are not violating any local laws by turning your condo into a vacation rental.

That being said, if you are using your condo as a vacation rental, you had best consult with an insurance agent, and buy the BEST policy you can afford. Check out the limittations and exclusions of any policy before you purchase it.

Bottom line: Cover yourself !!!!!

Best of luck to you.

Kawain Payne, Realtor
0 votes Thank Flag Link Thu Oct 18, 2012
Hello Laura,

If you are going to let your condo as a vacation rental , you are now conducting business. Since your property is now going to be used for income producing purposes you will want to do a few things right away.

First check with your local city government. Some cities require you to have a business liceense if a property will be converted into a vacation rental..

If this is the case for your city you will have to pay a bed tax for each night the vacation rental is occupied, this is in addition to your business license fee.

As for insurance, your regular HOA will not cover your guest,. You will need to contact your personal insurance broker and explain to them you will be using the property as a vacation rental. They will be able to inform you of the exact insurance product needed to match your situation.

Best Of Luck to You!

Kawain Payne, Realtor
0 votes Thank Flag Link Fri Jun 22, 2012
If your policy covers renters then it should be covered...

make sure you are not confusing it with the HOA insurance police.. that one only covers the building and Home Owner's Association and it does not cover for any losses inside your unit or to your personal property...
0 votes Thank Flag Link Fri Jun 22, 2012
It should be covered under your liability portion of your Insurance but as mentioned below you should check with your insurance agent.
0 votes Thank Flag Link Fri Jun 22, 2012
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