What is Home Sharing?
Home Sharing is when you rent your home or a portion of your home out on a temporary basis. More and more vacationers and travelers find short-term home rentals more appealing than hotels, due to the space, privacy, and affordability they often offer. With 68.2 million home sharing economy users projected in the U.S. in 2023, there are some important things to know before you decide to become a host.
A standard Homeowner’s Insurance policy does NOT cover home sharing.
A typical homeowner’s policy provides coverage for the risks associated with owning a home, such as unexpected storm damage, burglary, and accidents or injuries that happen on the property. Commercial or business activity is almost always excluded.
Without a Home Sharing policy or endorsement, you could be exposed to coverage gaps.
Home sharing platforms such as Airbnb offer limited coverage, so you cannot rely on those solely to properly cover you and your home.
Several insurers offer a Home Sharing endorsement.
When inquiring about the home sharing endorsement, it is important to tell your insurance provider whether the home is your primary residence, secondary residence, or investment property.
If your property is rented or leased, you must get the landlord’s permission to sublet.
A landlord has a vested interest in the exact usage of their property.
Many cities, counties, HOAs and other municipalities have home sharing restrictions.
Check with your local government/HOA to make sure home-sharing isn’t restricted on your property.
INFORMATION PROVIDED BY: TAMMY FARMER, HOME SERVICES INSURANCE.