State issues insurance warnings regarding short term rentals

Posted on: May 8 2015 | Posted in: Latest News

By: Tegan Wendland, Reporter CityBusiness

The Louisiana Department of Insurance is warning homeowners and renters of the risks associated with short-term rentals. Insurance Commissioner Jim Donelon said the recommendations are in response to what he sees as a growing issue across the state, especially in New Orleans.

Short-term rentals have been the topic of much discussion by the City Council and neighborhood associations, who say the practice is disruptive and drives up rental prices, forcing potential long-term tenants to look elsewhere. Tourism officials worry about the tax revenue the city loses because of it.

Landlords say the business is needed to accommodate a growing number of tourists who want a more authentic New Orleans experience.

In a tip list distributed this week, the LDI said that both guests and hosts could face losses if property is vandalized or someone is injured, and many homeowners’ policies don’t cover such situations.

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