Many B&B owners are under the impression that their standard homeowners insurance will cover them for their B&B but that isn’t always the case. Policy providers of homeowners policies do cover B&B’s but it might be an idea to take out separate insurance.
What does my homeowners insurance cover me for and what does it not?
Standard homeowners insurance is a great product for your home, and as many people who run a B&B also live in it as their home, it is generally assumed that the homeowners policy will be enough, but that isn’t always the case.
What if a guest were to trip on a loose piece of carpet and tumble down the stairs? Would you be covered by your general homeowners insurance? Chances are probably not as many standard New York home insurance policies do not cover personal liability. Therefore a commercial policy is usually better.
The commercial policy Liability cover
A commercial cover comes in two parts, the first part being Liability. If we take the above example of a guest falling down the stairs as a direct result of your negligence whilst on your property and they injure themselves, then under the Commercial policy’s Liability section you are covered against any damages through being sued. This cover will provide you with a defense lawyer should your guest take you to court, to argue your case and all fees, plus any settlements awarded by the jury to the injured party will be covered.
The commercial policy Property cover
The second part of the commercial cover is Property. This coverage protects your buildings and property such as telephone and computer systems against any repair or replacement costs due to damage.
There are many types of extended coverage that you could consider when taking out a policy to protect your B&B. Such as special events insurance which covers you against private hire of your venue for special events such as corporate holidays, birthday and retirement parties and weddings.
If a large scale disaster were to strike your property and all other policies had been exhausted, then there is always Umbrella liability insurance to protect against such eventualities.
Exclusive B&B cover
Many home insurance providers offer a bespoke service for B&B owners allowing them to pick and choose their coverage within the policy to make sure that they have the best of everything to suit their needs and not having to pay for anything that isn’t necessary. It is always best to check with your policy provider what products their company offers.