With a median home value of $786,800 and a visitor economy running through its housing, a great many Sedona households have both substantial equity and paying guests. Most personal umbrellas exclude the second.
Business pursuits are excluded on a personal umbrella. Renting to guests is a business pursuit.
Three things about having both real equity and a commercial activity at the same address.
A personal umbrella is written for personal exposures. Renting a property to paying guests is a business pursuit, and a claim by a guest injured during a stay is commonly excluded. Households buy an umbrella believing it covers everything they do and discover that the one commercial thing they do is the thing it does not reach.
At this level of home value, a liability claim that exceeds underlying limits reaches something substantial. The case for an umbrella is strong here on the personal side alone, which makes it worse if the commercial exposure quietly sits outside it.
Where a property is let to guests, the answer is commercial liability with an excess layer above it, running alongside the personal umbrella rather than instead of it. Buying more personal umbrella does not extend it to an excluded activity.
Separating the personal exposures from the commercial ones.
The question that decides whether a personal umbrella is sufficient on its own.
What sets the number on the personal side.
Usually, where there is a short-term rental. It is a separate purchase and a necessary one.
Tell us whether any property takes paying guests, and what your current limits are.
We separate the personal exposure from the commercial one and cover both.
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