With the chilly winter months ahead, many people are thinking back to their vacations this summer and looking ahead to future vacations. Over the past 10 years, home-sharing has become a popular option for travelers that are traveling all over the world. Home-sharing is an attractive alternative to hotels and motels as it allows a group of travelers to rent a home together for a short-period of time. With the advances of technology, you can book an entire house for your upcoming vacation from an application on your smartphone. While there are pros and cons to renting a home for vacation, you should be aware of possible insurance issues whether you are the Host (owner of the home) or the Guest (renter of the home).
If you are interested in becoming a Host and listing your home, apartment, or a room in your home as a Short-Term rental there are ramifications that you need to be aware that could impact your insurance. The on-line, application-based platforms offer some forms of coverage but should not be relied on to protect your property or you individually. A standard Homeowner’s insurance policy will not provide proper coverage if you are using your home as a rental property. There is a “Business Pursuit” exclusion commonly found in Homeowners insurance policies that would exclude claims that are related to a business pursuit. Also, in a Homeowners policy, it is represented to the insurance carrier, that this is a primary residence of the policyholder and not used for commercial or business purposes. Each online platform may offer coverage to the “Host” when renting their home or property with them. We have found many of these platform’s offerings to be restrictive for the host with less coverage than what the “Host” would have from their own policy. Finding proper insurance that is tailored to home-sharing is strongly recommended. Insurance carriers view these exposures differently. Some insurance companies require a Landlord Policy be written while some Homeowner carriers can include endorsements to provide the proper coverage. Here at the Ten Eyck Group we will review your exposures and guide you to finding the right carrier for your needs.
When you become a guest and are renting a home-sharing house, coverage for you the guest would be through your personal homeowners or renters policy. If your personal property was damaged from a covered cause of loss or a theft, we would look to your homeowners or renters insurance policy for coverage via the personal property off-premises endorsement. This provides coverage for losses or thefts outside your home, standard coverage is 10% of personal property limit unless increased by endorsement. This limit should be reviewed to ensure you have proper coverage for your personal property away from your home. Any Damage you cause to property could be covered if it is a covered cause of loss, and if you were negligent from your Personal Liability coverage on your homeowners or renters policy. There are certain exclusions that could apply so make sure you understand your policy and talk to your insurance agent.
Whether you are an owner that is using a home-sharing site to list your home, or using a home-sharing application to find your next vacation spot, it is important to understand the insurance ramifications. Do not assume you are covered properly until you do the research. Our team at the Ten Eyck Group are happy to guide you and answer your questions. Submit a home sharing insurance quote today!