With the rise in popularity of companies like Airbnb, VRBO and Home Away, many people are interested in earning additional money by renting out their home. But are you protected for accidents that could occur when renting out your home? The answer is yes – and no.
Protection From Claims Against You
The major homesharing companies listed above all provide a $1 million liability insurance policy for hosts who rent out their home at no additional cost to the homeowner. This coverage provides protection from injury claims and property damage claims made against you by renters staying in your home. It’s important to note that this coverage only applies during the listed booking period, meaning that guests who arrive early or who overstay their booking may not be covered.
Protection For Your Personal Property
Each rental company provides a different level of coverage for your personal property when using their services, so it’s important to check each company’s website for detailed information regarding their available coverages.
Airbnb provides hosts with $1 million in coverage for damage to their property at no cost to the host. However, damages to things like cash and pets aren’t covered and there are some limitations to the coverage for artwork, jewelry and collectibles.
Homeaway/VRBO does not provide complimentary coverage for host’s personal property, but does allow the option for hosts to secure rental deposits from travelers or to charge travelers for temporary property damage policies where the host is the beneficiary.
How Does My Homeowners Policy Apply?
Your homeowners insurance is unlikely to provide coverage if you are regularly renting your home out to guests. Most homeowners policies exclude coverage for regular property rentals, as they consider these rentals to constitute commercial activity. If you plan on renting your house out on a one-time basis it is possible your homeowners policy may apply, but you would need to check with your insurance company in advance to confirm.
If you’re interested in renting out your home through a homesharing company, you can speak with an Advisor at Webb Insurance to discuss business or landlord insurance policies that will help to protect you and your property.