Finding RV insurance that allows short-term rental (AirBnB)

[njarnold]

We are looking into insurance options for a Class A that we'll be using as a stationary rental (we're in a highly lucrative spot for AirBnB). It will be parked as rental most of the year, but occasionally, we'll be driving the RV for summer trips etc.

Here's the breakdown of what we've found so far: We can find RV insurance that will cover the RV while we are personally using it, but as SOON as we have short-term renters in it (even stationary renters) most carriers remove all liability coverage (if a renter should happen to get hurt) and all comprehensive coverage (if a tree should happen to fall on the unit, wind/hail etc).

We could choose to rent using ONLY RV rental sites (Outdoorsy / RVshare / RVezy), and those sites solve this insurance problem by having each renter purchase their own RV insurance policy just for the rental period but... it's really expensive because the sites don't distinguish between stationary rentals and renting out the entire RV (for driving across the US etc).

So bottom line question: is there a stand-alone RV insurance (any including commercial) that allows short-term rental. That would enable us to use the actual AirBnB platform rather than just RV-sharing sites. I'd also appreciate recommendations for any insurance brokers or agencies who specialize in RV insurance even if it's just to get advice or various options.

Thanks in advance!

[JoeH]

An option might be to just have liability insurance while the RV is sitting. $1m liability is about $1000/yr for us for our rental RV lot. Then, when you want to travel, get auto/rv vehicle coverage. When you are done with your trip and want to park it for rental, cancel the vehicle insurance.

[Bruce_Brown]

Check with a smaller, local insurance agent. Explain to them exactly what you're doing and see if they have a smaller insurance company that understands what you're trying to do. It may be as simple as a rider on your homeowners.

A few years back we were doing a TT rental, it worked great.

On our last trip to Arizona we rented a 5th wheel as a ABnB, it was functional. Fortunately I was handy with RVs as I ended up fixing a few issues. The host was good and did give us a partial refund for me work too. :B

[njarnold]

dedmiston wrote:
Hello njarnold,

Welcome to the forum.

Sorry to see that some of the responses to your first post have been disagreeable and unresponsive.

Folks - Please chime in if you have useful info about the insurance question. Otherwise, please keep your comments civil or just keep them to yourselves.

Happy Camping,
Dave - Administrator

Thank you, Dave, and I do appreciate those who have provided some helpful information or even cautions of things to be careful of. I realize we're new to this and lot's to learn, but we're trying and doing the best we can!

[dedmiston]

Hello njarnold,

Welcome to the forum.

Sorry to see that some of the responses to your first post have been disagreeable and unresponsive.

Folks - Please chime in if you have useful info about the insurance question. Otherwise, please keep your comments civil or just keep them to yourselves.

Happy Camping,
Dave - Administrator

[RLS7201]

Yankee Clipper wrote:
Speaking strictly for myself: I'd rather rent my toothbrush than my motorhome.

May I use your tooth brush work on my dentures? :E

Richard

[JRscooby]

Sometime in the last few weeks I woke up with Youtube playing. Lite Brite nation was taking their insurance agent for a ride in their off-road vehicles. Might be worth a look to get name, make a call.

[njarnold]

valhalla360 wrote:
There's a reason commercial insurance is higher...plain and simple, renters are hard on equipement.

Right... no problem with a commercial insurance option (as I said earlier) and just to clarify--this has nothing to do insurance for renter damage--we're simply looking at carrier options for commercial liability and comprehensive that would also allow for short-term rentals.

way2roll wrote:
If you want a motorhome that badly, take the 10-20% you were going to use as a down payment and find an older well cared for unit.

Yup--that's exactly what we're doing and doing some basic remods to make more rental friendly (and lower maintenance) so our investment will be much lower than a new unit. From folks I've talked to, stationary camper rentals seem to have much better experience with less damage than renting for driving etc.

Anyhoo... 😉 appreciate all the additional advice... but still open to any actual leads or recommendations on insurance carriers. I do appreciate the earlier recommendation for MBA and did contact them--they do cover stationary rentals and some possibility there though a little clunky from the UI end and how that interfaces with AirBnB (which is what we'd prefer to use).

Thanks for any additional carrier options to pursue or brokers who might be experienced in this area.

[way2roll]

I agree. If you need to offset the cost of the RV by renting it I would STRONGLY caution against it. A bank is going to want 10-20% down and expect your rate to be about 8-10% with good credit. A lender is also going to want to know if you'll be renting it. RV's depreciate at a pretty rapid rate - especially when there is a saturated market, demand is down and rates are high. What that means is, when you buy a $100k motorhome, it's worth $80K when you drive it off the lot in fair market value. In a year it will be worth $60k if it's rented. I am not exaggerating. That's potentially a $40k loss in a year. Will you make enough to not only offset depreciation but cover the monthly payment, insurance and repairs? (There will be repairs). Most Air BNB's rv's are TT's. The reason - as previously suggested, your capital injection is much less and far more conducive to what you want to do. Motorhomes are expensive and they require more maintenance.


Sounds like your mind is made up, but are you being honest with yourself, or telling you what you want to hear to justify getting a MH when you really can't afford it?

If you want a motorhome that badly, take the 10-20% you were going to use as a down payment and find an older well cared for unit. The memories will come no matter what type of RV it is and you'll be way ahead of the game financially with almost no risk to loss of value - And countless other strangers won't be sleeping in your bed, using your bathroom and beating the stuffing out of it.

I am not trying to be condescending, I am truly trying to help. I've owned an RV rental business. It is not for the meek of heart. It's amazing what strangers will do to rentals. Disgusting actually.

[valhalla360]

There's a reason commercial insurance is higher...plain and simple, renters are hard on equipement.

Better option would be to get 2 RVs, the MH for your personal use and a travel trailer for commercial use. The depreciation from the hard use of the MH will likely be significantly more than taking a total loss on the travel trailer.

Of course, if you can't afford the MH without the airbnb income, you are setting yourself up for failure when someone trashes it and you have to cover payments for 6 months while it gets sorted out...and hopefully, you get reimbursed for the damage.

[njarnold]

Oh we’re no less passionate about RV'ing--we will be using it for family travel (for a couple months during summer) and hoping to make memories with our kids but the AirBnB option is what will ALLOW us to get an RV financially instead of waiting 15 years until our kids are all grown up (several of the trailer folks who we’ve spoken with and are renting have paid off their RV’s in the first several years).

So anyway, we’re well aware of the hassles and issues that are involved but going in with eyes open knowing we’ll face those.

Appreciate the helpful comments and open to any other leads for insurance carriers or brokers for the short-term rental coverage. On a side note, I did check with MBA (and they can do it) but again, they’re more designed for renting the RV for actual driving and not stationary also really set up for AirBnB platform).

Thanks again and any additional help is appreciated.

[way2roll]

I doubt you find much help on this forum. Most people on here are passionate owners who would rather cut their arm off before renting their RV. Too much money spent and too much at stake for damage. And too personal and emotionally attached. For this forum, Rv'ing is a lifestyle, passionately pursued and a lot invested.

I would check local RV dealers or places that rent TT's and ask them about insurance, or call a few brokers and ask. The only company I know of for commercial RV renting is MBA. You could try there as well. Good luck. I know it's been done, I've seen TT Arbnb's as well as campgrounds that rent RV's on site. Call one of them and play dumb and ask them what kind of insurance they have. Maybe if it's not moving, it's not a big deal. It's renting drivable RV's that incorporate a lot of risk.

[njarnold]

We're well aware of what comes with AirBnB rentals and planning to retrofit and allow for maintenance as needed and far less risk with stationary rental (if we can find an insurance solution). My wife and I have stayed in several TT AirBnB's and their owners have had a great experience--the challenge we're having insurance wise if for renting a stationary Rv.

[Tyler0215]

Sounds like a great idea: let someone else pay for your motor haome while you aren't using it. Great till someone damages it and your next rental is an hour away. Or uses it to cook up a batch of meth and abandons it in a state park.
Use your imagination for what could go wrong and someone will have done worse.

[Yankee_Clipper]

Speaking strictly for myself: I'd rather rent my toothbrush than my motorhome.