Airbnb Liability Insurance
Massachusetts Passes New Law Requiring One Million Liability Coverage For Short-Term Rentals
In late 2018 Massachusetts became the first state in the union to regulate short term rentals through websites like Airbnb and VRBO.com.
Starting July 1, 2019 Massachusetts will require property owners who short-term rent any owner-occupied (your primary home), rental property, vacation home, apartment, condo, or any other livable property to pay a tax and register with the state. Even if it’s just a room in your house, or even your boat this new law applies to you.
Here’s What You Need To Know
Short-Term rentals are defined as any property rented for a period of less than 31 consecutive calendar days for each rental period.
- You must register your property with the state’s Department of Revenue.
- There will be a 5.7% state lodging tax applied and towns and city’s may impose their own tax as well.
- Must maintain Liability insurance of at least $1 million. Coverage must protect the property owner, short-term tenant, or other property owners (condo associations, trusts, etc) from bodily injury and property damage arising from any short-term rental.
- Renting 14 days or less per year exempts you from the logging tax, but you still must register and carry 1 million in liability.
- Must notify your current insurance agent, or company that you plan to rent short-term.
- Airbnb, or similar rental platforms may offer liability insurance coverage to satisfy requirement.
- The new law is effective July 1, 2019 and applies to any short-term rentals booked for July 1, 2019 or later.
We Offer Liability Insurance For Short-Term Rentals
Chances are your current homeowners insurance policy does not provide liability coverage for short-term rentals. The best way to protect yourself and satisfy the new law is to purchase a $1 million General liability policy.
If you’re looking to join the growing field of short-term rentals we can help with the liability coverage you’ll need. the cost can be as little as $500 per year in premium.
Click Here to read more about Massachusetts law regarding regulation and insuring short-term rentals.