With new technology and apps allowing homeowners to cash in on an extra bedroom or in-law apartment, you need to be careful on any homeowner claim that may happen. A standard homeowner policy has exclusions for the property of others, limitations of business property and an exclusion for liability due to a “business use” in the home.
Let’s start with a few examples: An AirBNB tenant vandalizes your property, their is an exclusion for “intentional acts” on a homeowner policy. Or you have a fire (partial) in your home, is the 2 bedrooms rented now business property, which has a $2,500 limit? Or they slip on the stairs and now are suing you. Doesn’t your standard homeowner policy exclude liability for “home-sharing host activities”?
So all homeowners need to be aware that because they have a homeowner policy, it doesn’t mean they have coverage for home sharing activity! A good, independent insurance broker would be able to tell you which insurance company has the right coverage for home sharing. So many consumer’s assume they have coverage, when in-fact, they may not.
Home Sharing, AirBNB and Your Homeowner Policy.
There are always exclusions built into all homeowner insurance policies, you need to be made aware of what those exclusions are. The insurance industry is attempting to address the home sharing homeowner, however, they are not known to make changes at the speed of light. There are some insurance companies that have already addressed the new, home sharing concept but more NOT than have.
Be a smart insurance and homeowner consumer and ask the questions BEFORE a claim arises and you find out there is no homeowner insurance coverage for your AirBNB.
Tom Larsen, President, Larsen insurance
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