The rise of home-sharing platforms like Airbnb and VRBO has transformed how homeowners utilize their properties. For homeowners who stay in their primary residence while hosting, this arrangement can be a lucrative venture—but it also raises important questions about insurance coverage. Here’s what you need to know about whether your home insurance will cover home-sharing activities when the homeowner remains in the home. … Check out our guide below.
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Understanding Home-Sharing
Home-sharing allows homeowners to rent out their space to travelers, providing an excellent opportunity to earn extra income. However, it’s essential to recognize that this can also introduce new risks, which standard homeowners’ insurance may not cover.
Standard Homeowners Insurance Policies
Most standard homeowners’ insurance policies provide coverage for personal property, liability, and dwelling. However, they typically have exclusions for commercial activities, which can include home-sharing. Here’s what to keep in mind:
Personal Property Coverage: Your belongings may be covered if damaged, but this is often limited when guests are involved.
- Liability Coverage: If a guest is injured on your property, your standard liability coverage may not be sufficient.
Understanding these limitations is vital before you decide to rent out your home.
The Importance of Disclosing Home-Sharing Activities
It’s crucial to inform your insurance provider about your home-sharing activities. Failing to do so could result in denied claims or even cancellation of your policy. Here’s what to do:
- Call your insurance agent and discuss your plans to host guests.
- Understand the implications of your policy and what it covers.
- Transparency with your insurer will help you avoid potential pitfalls.
Options for Home-Sharing Coverage
Fortunately, many insurance companies offer specific coverage options for home-sharing hosts. These may include:
- Home-Sharing Endorsements: Add-ons to your existing policy that extends coverage to rental activities.
- Specialized Insurance Policies: Standalone policies designed for short-term rentals, offering comprehensive coverage for liability and property damage.
Evaluate your options and choose a solution that best fits your needs.
Tips for Safe Home-Sharing
To minimize risks associated with hosting guests, consider the following best practices:
- Screen Guests: Use the platform’s review system and set house rules to ensure a safe environment.
- Secure Your Home: Install locks, use security cameras, and maintain a safe atmosphere.
- Document Everything: Take photos of your property before guests arrive and keep a record of interactions.
These steps will help protect your property and ensure a positive experience for both you and your guests.
Home-sharing can be a rewarding venture, but it’s essential to understand how it affects your insurance coverage. By being proactive and informed, you can protect your investment and enjoy the benefits of hosting.
If you’re looking for a new provider, contact Cornerstone Insurance Agency LLC (“Cornerstone Insurance”), one of our agents will be happy to help you find what you need.
This article is for informational purposes only. You should not act based on this information without first consulting with your insurance agent; if you would like a quote from a Cornerstone Insurance Agency licensed agent, contact us. We disclaim all liability for actions taken or not taken by you based on the contents of this article which is provided “as is.” Cornerstone makes no representation that this content is error-free.