The NY Times, Wall Street Journal, and Fox Business are all reporting today on the Jersey City short-term rental regulation that passed.
Why so many headlines you might ask? The reason is Airbnb plans to go public in 2020 and prohibitive regulation makes potential investors uneasy. What if other cities adopt a similar regulation? The truth of the matter is common sense regulation surrounding the short-term rental or home-sharing economy is already happening all across the U.S., Jersey City just happens to be across the river from New York City, hence the media coverage.
General Liability Insurance Requirement; Jersey City Airbnb Regulation
As seen in the above snapshot, Jersey City decided to make it a requirement for all short-term rental permit holders to carry a minimum of $500,000 in general liability insurance. This is a big deal. Most are not aware, but general liability is aka commercial general liability or business liability. Before we get into more details, it’s important for readers to know that Proper Insurance is the Nations leading provider of commercial general liability to Airbnb and Vrbo property owners.
When you entrust your property to a paying short-term rental guest, essentially giving them the keys to your house, you are engaging in a business transaction, it’s no longer a personal exposure. Jersey City is absolutely doing the right thing by requiring permits holder to show proof of general liability insurance. This provides coverage for “bodily injury” or “property damage” the owner may be found liable for. An example would be a “slip and fall” of a guest or damage to a neighbors property.