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F E B R U A R Y , 2 0 1 8
to week, or even month to month.
Community associations are classified
and rated with the assumption that
they are considered to be annual
stays (assuming that a lease is a mini-
mum of one year).
Most insurance carriers hate the
idea of short-term rentals and as
an insurance broker, we recommend
against your community association
allowing them. However, prohibiting
residents from making easy money just
by renting out their unit while they are
away on a vacation of their own is
not as easy as it sounds either.
As many of our CAI-NJ experts will
tell you, getting anything added to a
community association’s governing doc-
uments can be a challenge. Getting the
community association’s board, or the
entire community, to agree on allowing
or prohibiting short-term rentals is gener-
ally the first step. The next step is having
that decision put into the community
association’s master deed, bylaws, or
rules and regulations. For the sake of
this article, we will say the association
agreed to move forward and allow
short-term rentals in their community or
building. The next step is to make sure
that, in the community association’s
governing documents, a requirement is
added that any owner who is participat-
ing in the short-term rental of their unit,
must carry the correct insurance in order
to properly protect the parties involved.
Airbnb offers a policy called “Host
Protection Coverage,” but many insur-
ance carriers refer to it as “Short-Term
Vacation Rental Insurance.” These spe-
cially designed policies are for unit
SHORT-TERM...
from page 23.
CONT I NU E S ON PAGE 39