Just a few years ago, taking a trip involved contacting travel agencies, booking hotel rooms and making plans far in advance. Today, however, smartphones and the internet have helped create a new sharing services that allow homeowners to connect with travelers and rent out their homes, spare bedrooms or other accommodations for a fee.

Airbnb and VRBO are the most popular of these sharing services. They offer a convenient platform that can provide homeowners with an extra source of income. However, renting through one of these rental platforms can also expose you to substantial risks and leave you with costly property damage and liability claims.

Relying strictly on your regular homeowners or renters insurance policy while hosting guests through a home sharing service can lead to significant gaps in coverage. These policies are designated to protect you and your family from everyday risks, and not from commercial renting. If a renter uses your home for even a small amount of time, you and your family will be exposed. Most homeowners and renters policies won’t cover property damage that’s caused by Airbnb guests. Step one should be to call your agent or RISE Insurance to be sure you are covered. It could be that all you need is a home sharing endorsement to expand your coverage.

Gaps with Home Sharing Provided Protection

• The homeowner or host typically has to resolve any issue with the guest involved prior to receiving any compensation for damages. This also means that the host would need to make a claim on their own insurance policy before the rental service guarantee would be eligible.

• Intentional acts such as theft of the homeowners property are NOT covered.

• Incidents that are not the result of an accident, such as the results of a wild party, are not covered.

• Property issues such as mold, asbestos and bedbugs are also not covered.

• Personal property of any guest is generally not covered when the guest is a renter

While short term home sharing has the potential to provide a nice increase in income it’s not without its risks. Having someone rent a space in your home exposes you to potential property damage and liability issues. Before you decide to try it for yourself be sure to contact your insurance agent. We don’t want to you pay more in repairs or medical bills because you didn’t have the appropriate coverage.

For more information on short term home sharing contact RISE Insurance at 423-541-1111 or chad@riseins.com for a free policy review to make sure you are properly covered. You can request a quote at https://www.riseins.com/personal-insurance-quote-request