Austin, TX- It's almost that time of year. Everyone is getting excited to get their wristbands, see some bands, and enjoy Austin. Some locals and some from out of town. Believe it or not, some locals are getting out of town. For them this is an opportunity to avoid the crowds, traffic, and make some extra loot by renting out their home or apartment (or even a room).
Some insurance companies may allow policyholders to use their property as a rental for a one-time, special occasion like SXSW or ACL, as long as the insurance company is informed about it and knows all the details. Other insurance companies (probably most) will not allow it. Most insurers consider any rental of your home to be a business venture, requiring the purchase of a business policy, because a standard homeowners insurance policy excludes losses arising from the operation of a business. Also consider the fact that your homeowners insurance company is calculating the risk based on you living (occupying) the dwelling not a tenant.
If your agent or insurance company says you are covered, I highly recommend getting something from them in writing. Also understand that at the end of the day, the insurance adjuster is the person that will write the check and determine whether or not there is coverage, not your agent.
Bottom line, there are exclusions in every homeowners insurance policy, so before giving the keys to one your largest assets to a total stranger for a few bucks, make sure you understand your policy. If you have any questions, please feel free to contact us. Enjoy the bands and enjoy Austin :-)