LLCs and Insurance for Short-Term Rental Homes
Questions about an LLC, rental insurance and umbrella coverage to discuss with your attorney and insurance broker before renting out your home.
Justin Feldstein
Founder, Haus Vacation Rentals · Licensed NYS Real Estate Broker
If you plan to rent out your home, review how you own it and how it is insured before accepting bookings. Bring the deed, loan documents, insurance policies and your rental plans to your attorney and insurance broker.
Ownership and an LLC
A limited liability company can limit its members' liability for some business obligations. Ask an attorney what an LLC would cover in your situation and what you could still be responsible for personally. Before transferring title, check how a change would affect your mortgage, permits, insurance and taxes. The New York Department of State's LLC guide explains formation and recordkeeping requirements.
Insurance for rental use
Tell your broker how often you rent the home, whether you also stay there and which amenities guests use. Ask which policies cover guest injuries, damage to the home and claims involving a rental stay. Have the broker confirm the named insured, exclusions and limits in writing. If you have umbrella coverage, ask whether it applies to the rental and which policies it sits over. The New York Department of Financial Services' insurance guide explains basic homeowner and umbrella coverage.
See our short-term rental insurance guide for questions about the home's policy, booking platform protection and how Haus helps with claims.
