Rental Property Insurance on Medium Term Rentals

[Sean Walton]

Hi All,

    I am currently renting out my condo for 30 days to 4 months using airbnb. I can't do shorter than 30 days because of local laws. Air bnb has insurance included but I still need a homeowner policy for piece of mind, the small amount of vacancy time and to satisfy the mortgage requirements. State Farm is telling me I cannot get a rental property policy because I don't have signed leases for at least a year so I would need to get a hotel policy. My friend does a similar thing and he was able to get State Farm to underwrite his insurance. I have a call into his agent who will return Monday. I'm wondering if anyone else has had success with this any suggestions or cautions. 

Thanks and Happy New Year

Sean

[David Tipton]

Hi @Sean Walton.  You need to be careful renting for longer than 30 days as you may create a month-to-month tenancy under California/San Francisco law.  You may have a difficult time getting those folks to leave and may have to go through a lengthy eviction process.  I heard stories of folks in LA setting up a 30-day AirBNB rental, changing the locks, staying for months until they were evicted, and doing it all over again.  You should be wary of anyone local trying to rent.  You should probably speak with an attorney in your area to get the full scoop.

You may also find this helpful, seems like they may have their own insurance program:

https://www.airbnb.com/help/article/871/san-franci...