Home sharing has become increasingly popular with the rise of platforms like Airbnb and Vrbo. Homeowners now have the opportunity to rent out their properties to short-term guests, providing a unique travel experience and earning extra income. However, it’s crucial to be aware of the potential insurance pitfalls that come with this arrangement. Here are some key considerations:

1. Liability Coverage

When you partake in home sharing, it’s important to ensure that you have adequate liability coverage. Standard homeowner’s insurance policies may not extend coverage for home sharing activities. Review your policy carefully and discuss your plans with your insurance provider. Some insurers offer specific endorsements for home sharing, which can provide additional protection.

2. Property Damage

Accidents can happen, and it’s essential to have coverage in case your property sustains damage from a guest. While most home-sharing platforms offer some form of property damage protection, it’s crucial to understand the limitations and exclusions. Familiarize yourself with what is covered and consider purchasing additional coverage if necessary.

3. Loss of Income

In situations where your property becomes temporarily uninhabitable due to covered perils or damage, loss of income can be a significant concern. Traditional homeowner’s insurance policies typically do not provide coverage for loss of income resulting from home sharing activities. Explore specialist insurance policies or consult with your provider to ensure appropriate coverage.

4. Personal Belongings

While guests are typically responsible for their own personal belongings, accidents and theft can occur. It’s important to note that your homeowner’s insurance policy might not cover damage to or loss of your guest’s belongings. It is advisable to inform your guests to acquire their own travel insurance to protect their belongings.

5. Local Regulations

It is crucial to be aware that home sharing is subject to local regulations and restrictions, which vary by location. Complying with these regulations is necessary to avoid potential legal issues and insurance conflicts. Failure to adhere to local laws may jeopardize your insurance coverage.

Home sharing can be a rewarding experience, but it is critical to address the insurance implications it brings along. Seeking guidance from your insurance provider is paramount to ensure the right coverage for your home sharing activities. By being proactive about insurance protection, you can find peace of mind and fully enjoy the benefits of home!

Michael Vereecke, CLCS

Agent/President, Customers First Insurance Group