I was boarding a separation-anxiety-prone Husky in my rental apartment when he chewed through the parquet flooring and clawed apart the door frame in a panic. My landlord sent me a bill for $3,800 and threatened eviction, so I called my personal renters insurance (Lemonade), confident I was covered. The claims adjuster asked one question—”Were you paid to watch this dog?”—and when I said yes, they denied the claim instantly and flagged my policy for cancellation.
Key Takeaways
- Business Pursuits Exclusion: Standard renters/homeowners policies strictly exclude any liability or damage arising from “business activities.” If money changes hands, your personal policy vanishes.
- Commercial General Liability (CGL) is Mandatory: You cannot rely on an app’s guarantee (like Rover) to cover damage to your landlord’s property. They usually exclude it.
- “Damage to Premises Rented to You”: This is the specific line item in a business policy you need. It usually covers fire, but you need to check if it covers “pet damage.”
- Eviction Risk: In 2026, landlords use AI-driven lease enforcement. If you run an unauthorized kennel, you breach your lease and void your insurance.
The “Why” (The Trap): The Business Exclusion
The trap is believing that because you live there, your renters insurance covers “life.” It doesn’t. It covers personal life.
The moment you accept payment, you are a commercial entity operating out of a residential unit.
The Clause: “We do not cover bodily injury or property damage arising out of or in connection with a ‘business’ conducted from an ‘insured location’.”
Without a commercial policy, you are personally liable for every scratch, bite, or noise complaint fine.
[IMAGE: Screenshot of a standard Renters Policy “Exclusions” page highlighting the “Business Pursuits” clause]
The Investigation: I Called Them
I acted as a tenant in Chicago wanting to board dogs.
1. Lemonade (Personal Renters)
- The Answer: “No.” They were very clear. They do not offer an endorsement for pet sitting businesses. If I board dogs, I risk having my entire policy dropped.
2. PCI (Commercial Pet Sitter Insurance)
- The Answer: They offer a policy that follows me.
- The Catch: I had to look closely at “Damage to Premises Rented to You.” The standard limit is often $100,000, which is great for fire, but I had to ask specifically about “pet damage to the unit” (like chewing). Some carriers sub-limit this to $5,000 or exclude “marring and scratching.”
3. State Farm (Business Endorsement)
- The Answer: My local agent said I could add a “Permitted Incidental Occupancies” endorsement to a home/renters policy, but it’s messy. It’s cleaner to just get a standalone business policy.
Comparison Table
| Feature | Personal Renters Insurance | Commercial GL (e.g., PCI/BIC) | Rover/Wag Guarantee |
| Covers Paid Dog Sitting? | NO | YES | Varies |
| Damage to Landlord’s Floor | No | Yes (Check limits) | Usually Excluded |
| Dog Bites a Neighbor | No (Business Exclusion) | Yes | Secondary only |
| Cost | ~$15/mo | ~$20/mo | Free (with high deductible) |
Step-by-Step Action Plan
- Get a Commercial Policy: Do not wait. Buy a General Liability policy for Pet Sitters immediately.
- Check Your Lease: Does your landlord ban “running a business”? If so, insurance might pay the damage, but you’ll still get evicted. Get written permission if possible.
- Add “Animal Bailee” Coverage: This protects the dogs staying in your apartment.
- Video Walkthrough: Before the dog arrives, video your apartment. If the landlord blames you for old damage, you have proof the dog didn’t do it.
FAQ
Does my landlord need to be on my policy?
They might ask to be an “Additional Insured.” This gives them direct protection if the dog bites a neighbor in the hallway. Most commercial insurers can add this for 30.
What if I only board friends’ dogs for free?
If no money (or barter) changes hands, your personal renters insurance should cover it. But if they buy you a $100 gift card? That’s compensation. Tread carefully.
Does this cover noise complaints?
No insurance covers fines. If the city fines you for barking, you pay that cash.