What type of policy would be required?

[kweidt]

What is the name of your state? MN

I am looking at buying a property that I would use part of the year as a second residence (like a lake cabin 3 months of the year) and the majority of the year it would be rented out to groups for crafting retreats.
The property would be able to sleep 10-12 people and may be located on a lake depending on what we find.
Would this be a HO-2 policy with a HO-4 supplement? Is there any kind of special coverage we would need as the property would be rented and we would not be on the premises?
Thank you and I look forward to replys.

 

[moburkes]

What is the name of your state? MN

I am looking at buying a property that I would use part of the year as a second residence (like a lake cabin 3 months of the year) and the majority of the year it would be rented out to groups for crafting retreats.
The property would be able to sleep 10-12 people and may be located on a lake depending on what we find.
Would this be a HO-2 policy with a HO-4 supplement? Is there any kind of special coverage we would need as the property would be rented and we would not be on the premises?
Thank you and I look forward to replys.

You need a business owner's policy, and it will be super expensive. Why? Because you plan on having lots of short-term rentals. Good luck.

There is no such thing as an HO2 with an HO4 supplement.
HO2 is the most basic homeowner's policy there is. It is meant for owner occupants, but not seasonal homes.

If you were able to get a person policy, it would be a DP policy, not an HO policy. However, I can't imagine that any insurance company will write this huge risk under a dinky old DP policy. You need a "commercial" policy since you're using this home as a business.