HomeMy WebLinkAbout06-29-23 Public Comment - K. Madin - STR's with Insurance requirementFrom:Kent Madin
To:Agenda
Subject:Regulate STR"s with Insurance requirement
Date:Wednesday, June 28, 2023 11:11:05 AM
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In regard to the City's ongoing efforts to formulate regulation of STR's, I
wonder if you have considered requiring proof of appropriate homeowner's
liability insurance as one of the criteria for permitting an STR. This couldbe either required by the City or the City could mandate that the platform
(Airbnb, VRBO) be responsible for compliance with that requirement. It
sounds like the City is already moving to require the platforms to list the
Bozeman City permit number on the listings.
The insurance industry has finally come around and it is now fairly easy
and reasonably priced to add coverage to a homeowner's policy for STR
business activity. Making this a requirement for permitting makes sensein terms of protecting the city against lawsuits. The City has chosen to
regulate this industry and any good PI lawyer with a dead or injured client
on their hands, whose injury resulted from negligence at an STR can also
look at the City as a defendant. Just the fact that the City issued a permitconveys a sense of endorsement to the renter. Even if including the city in
a lawsuit is a stretch, it still requires time and money for the City to
respond. Requiring STR's to have appropriate types and levels of
insurance effectively is a form of indemnification for the City, much as anycontractor working for the city is required to indemnify through their own
first tier of insurance.
An alternative to REQUIRING insurance would requiring an answer to thequestion "Do you have homeowner insurance that covers STR/Commerical
activity?" with the understanding that the STR operator is REQUIRED to
list the answer to that question on their listing on the platforms.
The City has decided to regulate STRs and as such is in for a dime, in for a
dollar. Half measures are a liability for the citizens of Bozeman. Requiring
insurance to operate a business (or a motor vehicle) is long established.
Kent Madin
Kent Madin
Bozeman, MontanaSkype KentinBZN+1-406-595-2310