No-Pet Policy? Here’s Why You Still Need the Right Insurance for Your MTR

Let’s talk about something that could be setting you up for a huge headache in your Mid-Term Rental business: your landlord’s insurance policy.

You might think, “I have a strict no-pet policy, so why does it matter?”

Well, here’s the reality: If you’re in this business long enough, you will get a rental application from a tenant with a service animal. And by law, service animals are not considered pets. That means your no-pet policy? It doesn’t apply.

Now, imagine this: You check your insurance policy and realize that it has a breed restriction list. And guess what? The service animal happens to be one of the restricted breeds.

What do you do?

I found myself stuck in this exact situation. And let me tell you, it was not fun.

Here were my options:

Option A: Deny the rental application because of my insurance policy

Sounds reasonable, right? Wrong. Even if my decision was based on insurance limitations, the tenant could still file a Fair Housing complaint. Whether I was in the right or not, I’d be spending time, energy, and possibly money fighting a case that I didn’t want in the first place.

Option B: Accept the tenant and risk my insurance coverage

I called my insurance company, and they confirmed that if I accepted this renter, they would drop my liability coverage 🥴 

So… what now?

Option C

After consulting with an attorney and thinking it through from every angle, I made the decision to go shopping for a new insurance policy—one that did NOT have a breed restriction list.

Best. Decision. Ever.

Not only did I avoid potential legal issues, but I also gained peace of mind knowing that I’d never be in this situation again.

Why This Matters (Even If You Have a No-Pet Policy)

Even if you never plan on allowing pets in your rental, the reality is that service animals are protected by law. Not only that, Emotional Support Animals (ESAs) are also not considered pets and are protected under Fair Housing rules. This means you legally cannot deny them, and Fair Housing complaints are not something you want to deal with.

Yes, yes, I understand some small landlords may qualify for exemptions under the Fair Housing Act, but here’s the reality: it’s not illegal in this country for someone to file a complaint or even sue you. Even if you’re in the right and ultimately win the case, you’re still looking at time, stress, and potentially legal fees.

So, it really comes down to a business decision for your MTR that only you can make. Which risk do you want to deal with? The risk of navigating a Fair Housing complaint, or the risk of your insurance policy dropping you if you accept a tenant with a restricted breed? I chose to protect myself from both—by switching to an insurance provider that doesn’t have a breed restriction list.

By choosing an insurance policy without a breed restriction list:

✅ You protect yourself from unexpected legal battles.

✅ You keep your coverage intact even if a service animal is involved.

✅ You expand your tenant pool if you ever decide to allow pets in the future.

At the end of the day, your insurance policy should protect you—not put you in a position where you have to choose between breaking the law or losing your coverage.

So do yourself a favor: Check your policy. If it has breed restrictions, maybe it’s time to make a switch.