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Turning a spare room into extra income sounds simple, but in New York, your standard homeowners’ policy may not fully cover you as a host. Renting, whether to a long-term roommate or short-stay guests, can change how your coverage works, often creating gaps where you can least afford them. Your insurance representative at Carminucci Agency, serving Croton Falls, NY, explains what you need to know.
What Your Homeowners Policy Actually Covers
Most HO-3 policies protect your dwelling, belongings, and personal liability for everyday living. However, once rent changes hands, many insurers classify this as a business activity, which can limit or exclude coverage for guest-caused damage, theft, or injuries. To address this, carriers may offer add-ons such as a home-sharing endorsement, a unit rented-to-others endorsement, or a landlord package if you’re renting out a suite. These endorsements can adjust coverage limits, add fair-rental-value protection, and clarify guest liability.
Long-Term Roommates vs. Short Stays
Insuring a month-to-month roommate is often simpler than covering revolving weekend guests. Frequent turnover increases foot traffic, wear and tear, and the likelihood of accidental damage. If you’re adding features like a separate entrance, kitchenette, or egress, your dwelling limit and ordinance-or-law coverage may need to be updated to meet New York building codes. For condos or co-ops, both your HO-6 policy and the building’s master policy matter; bylaws may restrict subletting or short-term stays, which can impact claims.
Liability, Guests, and Platform Programs
Liability is one of the biggest risks for hosts. Medical bills from a slip, trip, or dog bite can escalate quickly. While platform host guarantees and host-protection programs offer some coverage, they are limited, have exclusions, and should not replace proper insurance. Consider increasing your liability limits, adding medical payments to others, or purchasing an umbrella policy if you host regularly.
Before listing your space, contact your agent at Carminucci Agency, serving Croton Falls, NY, to describe your setup and obtain the necessary endorsements in writing. Additionally, verify compliance with local New York municipal regulations. Proper coverage ensures your side income becomes a sustainable plan, not a risky gamble.