You have to get the mortgage company to endorse them before you can cash them or give them to your contractor.I've just been through this and it is a pain.

The mortgage company will ONLY endorse it when they receive:an itemized estimate from contractorcopy of the contract So, its not like I am pocketing any part of that check.

@Chris MasonI’ve seen this idea endorsed by Biggerpockets and Craig Curelop author of the house hacking strategy, can you sleep in a trailer in the back yard or driveway and rent out the rooms inside the house or Airbnb out the house.

Also, I am not endorsing any of these and all the other appropriate words to get me out of trouble :) 

@Kenny RobbinsThe Union Tribune put this out in December. https://www.sandiegouniontribune.com/business/story/2020-12-03/new-regulations-slashing-san-diego-short-term-rentals-by-50-percent-endorsed-by-planning-commission

These policies typically provide coverage for damages to the property and liability protection for the host in the event of an injury or accident.Another option is to purchase a commercial insurance policy, which is designed for businesses and can provide more comprehensive coverage than a traditional home insurance policy.It's also worth checking with your current home insurance provider to see if they offer endorsements or riders that can be added to your existing policy to provide coverage for short-term rentals.Regardless of which insurance option you choose, it's important to thoroughly review the policy and make sure it meets your needs and provides the level of coverage you need.

Seeing that the ABA has not endorsed these entities only tells me that they may be better for some people and result in less litigation, which results in less going to any attorney!

There are a few companies that use the Homeowners form and add endorsements to cover the rental but they are much less common. 

Disclosure: I'm not endorsing Heritage Oaks Realty.

We require all new vendors to provide a certificate of insurance (COI) with the 'additionally insured' endorsement prior to the start of a job.