I Have a Separate Guest House on My Property: Is It Still Covered?
Every year, millions of people visit Florida because of the great weather and the interesting sights. Running a guest house can be a great way to facilitate visits from family and friends, but it can also be a highly profitable side business. Today, we’ll explore whether your home buyers insurance covers guest houses or whether you need a separate policy.
I Have a Separate Guest House on My Property: Is It Still Covered by Home Buyers Insurance?
Generally, homeowners’ insurance covers all the buildings on your property, not just your main house. This includes garages, sheds, and even guest houses in your backyard. If you use your additional buildings to host private, non-paying guests like friends or family members, it’s likely that you don’t need separate insurance.
However, people who regularly rent out their guest house, for example on AirBnB or on a similar platform, are better off with an additional policy. If there is an issue such as an accident or a natural disaster, the home insurance policy might not pay out when the guest house is used as a bed and breakfast, and it won’t cover your tenants’ possessions.
What Does Guest House Insurance Cover?
Guest house or bed and breakfast insurance covers the unique risks associated with hosting paying guests on your property. Risks might include the property damage related to natural disasters like fires and floods but also public liability. If someone trips, falls, or otherwise hurts themselves while staying in your guest house, guest house insurance will cover the compensation for their injuries and the legal fees related to the case.
For most people, a simple policy will be enough, but it all depends on the size of the property and the nature of your bed and breakfast business. If you hire other people to serve or clean up after your guests, you might also need employers’ liability insurance.
How Much Will I Pay?
On average, guest house insurance costs between $50 and $60 per month, but various factors can affect the price. It depends on the size of your space, the number of people you host at any one time, the unique risks in your area, and the age of your structure. Your personal details, such as your credit score and your claims history, will also be taken into account.
If you want to make sure you’re getting the best deal possible, contact an insurance agent. They will ask you some questions about your home and your guest house, then provide you with the best quotes in your area. Since home insurance prices change rapidly in Florida, your agent can review your policy every year and help you make sure you’re still getting the best deal possible.
People who have a small guest house on their property don’t need to get additional insurance if they are using it for private purposes. However, guest houses that are regularly rented out should be insured to prevent expensive liability lawsuits and expenses related to guests’ property damage. Call us at Absolute Choice Insurance to find out what policies are available to you.