There’s a really big problem with General Liability Insurance for furnished housing property management businesses: the property under management and rented to the tenant typically is NOT considered the premises of the property management business. This means there is a fundamental gap in coverage for property managers (PMCs) renting furnished homes and condos. I have talked to more than one PMC in both the corporate housing and the vacation rental sectors who lost big money because the PMC became liable for damages arising out of rental activities at the rented property.
That’s where the InsureStaysTM “liability bundle” comes into play. The liability bundle is coverage supplemental to a General Liability policy that activates only during a covered stay at a covered unit. The bundle includes typical first dollar accidental rental damage common in furnished housing; but it does much more. Should damage to the dwelling itself or personal injury arising out of rental activities occur, after a deductible, liability for dwelling damages and personal injury is covered up to $1million dollars for the PMC and/or the property owner. Access summary information at https://insurestays.com/property-protection-bundle/.
The Massachusetts Senate (Senate document 2400) has just finalized its revision of MA House bill No. 4841. Per the below excerpt, this bill when passed will require liability insurance:
408 An operator shall maintain liability insurance of not less than $1,000,000 to cover
409 each short-term rental, unless such short-term rental is offered through a hosting platform that
410 maintains equal or greater coverage. Such coverage shall defend and indemnify the operator and
411 any tenants or owners in the building for bodily injury and property damage arising from the
412 short-term rentals.
Appropriate liability insurance is not only necessary to protect PMC business; it is also fast becoming a mandated requirement in many places. Don’t assume your current General Liability policy is protecting you or meeting such requirements.
InsureStaysTM offers solutions tailored to the unique needs of vacation rental and corporate housing markets, mitigating risk and addressing regulatory issues facing property managers.
For more information, email [email protected] or call (843) 544-2186 x 409.