Detached Garage Converted to AirBNB

An insured's detached garage burns down in a covered lightning strike, and somehow it's not covered just because of a little side hustle? The PLRB crew hunt for coverage and find what the insurer can pay out on when an insured rents out their property without updating their insurance company.   Notable Timestamps   [ 00:17 ] - The insured remodeled their detached garage for use as an AirBNB rental, but never notified their insurer. The garage burned down, and the insured files a claim for the property damage, contents, and nearby oak tree that also burned down.   [ 02:40 ] - This scenario's policy explicity does not cover structures "held for rental", so this clause would apply even though no guests were present on the date of loss.   [ 05:50 ] - The contents would likely be covered as long as the detached garage is not considered an "apartment."   [ 07:42 ] - However, the Special Limit of Liability would limit that contents recovery to $3,000 under this policy.   [ 08:04 ] - AirBNB provides a form of coverage which they state is not insurance, but it likely applies only when guests were, at minimum, present.   [ 09:52 ] - The oak tree is also covered, but likely limited to $500.   [ 11:13 ] - In a variation on the scenario, the group discusses that property of tenants would likely not be covered.   [ 13:26 ] - Fair rental value coverage only applies to covered losses.   [ 14:50 ] - Clauses on "homesharing activities" are more frequently appearing in newer forms.   [ 16:30 ] - Tim provides a recap of the scenario and the points above.   Your PLRB Resources   Adjuster Resource Sheet on Home Sharing Issues for Property Adjusters - https://search.plrb.org/?dn=72175&src=gsa   Highlights of 2022 Revisions TO Section I ISO Homeowners Form - https://search.plrb.org/?dn=87749&src=gsa   Coverage Question on "Home Sharing Endorsement Would Not Apply Where Tenant Rented Garage For More Than 30 Days" - https://search.plrb.org/?dn=77494&src=gsa   Webinar on "Homeowners Liability Coverage: Current Trends" - https://www.plrb.org/distlearn/webinars/vplayer.cfm?vid=w0086   Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/container.cfm?conlink=sec/cq/default.cfm) at no additional charge to you or your company.   Subscribe to this Podcast   Your Podcast App - Please subscribe and rate us on your favorite podcast app   YouTube - Please like and subscribe at @plrb   LinkedIN - Please follow at "Property and Liability Resource Bureau"   Send us your Scenario!   Please reach out to us with your scenario! This could be your "adjuster story" sharing a situation from your claims experience, or a burning question you would like the team to answer. In any case, please omit any personal information as we will anonymize your story before we share. Just reach out to [email protected].   Legal Information   The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.   Music: "Piece of Future" by Keyframe_Audio. Pixabay. Pixabay License. Font: Metropolis by Chris Simpson. SIL OFL 1.1. Icons: FontAwesome (SIL OFL 1.1) and Noun Project (royalty-free licenses purchased via subscription). Sound Effects: Pixabay (Pixabay License) and Freesound.org (CC0). https://thenounproject.com/icon/garage-6216862/ https://fontawesome.com/icons/bolt-lightning?f=classic&s=solid