Occasional Bed and Breakfast

November 15, 2013

The homeowner policy allows for occasional rental of the dwelling to others. What if the insured decides to offer his home as a bed & breakfast facility for a two week period? He will provide breakfast, cocktail hour, maid service, laundry facility, etc. I think this steps over the line of the exception to the liability exclusion.

North Carolina Subscriber

You have an interesting situation. While a bed and breakfast is normally a business, the fact that the insured is only doing it for two weeks means that it might not fit the policy definition of business; the 2011 ISO policy requires a business to earn more than $2000 for the 12 months before the beginning of the policy period; if the insured does not make more than $2,000 in that time, then even though it is an increased liability hazard, the business exclusion does not apply.