Q. My insured wants to rent their driveway for parking, does the homeowners liability cover this?
A. In the ISO homeowners policy, any rental activity by the insured is considered a “business.” The definition of “business” includes an exception for activities for which the insured receives $2,000 or less in total compensation for the 12 months before the beginning of the policy period.
If the insured receives more than $2,000 in compensation for renting out the driveway, it is subject to the “business” exclusion. In that case, the insured would not be covered for liability arising out of the rental parking activities on the residence premises.
In the TDI homeowners policy, liability arising out of rental of any part of the premises is excluded with a couple of exceptions not pertinent to renting the driveway. In addition, the business pursuits exclusion probably applies without an exception similar to the ISO policy.