Are you ready to start home-sharing? Talk to your insurance agent first
A home-sharing endorsement can be added onto a customer's existing homeowners' policy.
The concept of home sharing is becoming more and more popular.
According to Airbnb, 85% of millennials support the idea of renting out space to visitors. Renting your entire house or even just one room, especially if there’s a big event coming to your town, can be a good way to earn extra income, but it can also expose you to unexpected and potentially costly risks.
Related: Educating homeowners about home-sharing insurance coverage
“In this sharing economy, more people are renting out their homes or portions of their homes, and we want to make sure they’re protected. If you decide to rent your home for extra income you need to have the right insurance coverage,” says Bob Buckel, vice president of Personal Lines Products at Erie Insurance.
Here are four questions your insurance agent may ask if you plan to rent space in your home:
- Are you using a home-sharing network or renting your property on your own? When you rent your home through a home-sharing network it may change the use of your home from “residential only” to “rental income” property. Homeowners should notify their insurance company to ensure they’re properly covered.
- How often do you plan to rent to visitors? Even though the rentals may not be frequent, when you place an ad on a home-sharing network offering your whole home, or a room in it, it could have an impact on your policy.
- How much income do you plan to make from rentals? Based on this amount your agent may be able to recommend additional coverage options.
- Do you want to add a home-sharing endorsement to your policy? A home-sharing endorsement can be added onto a customer’s existing homeowners’ policy. The policy adds additional liability protection for the homeowner should something happen to a renter or their belongings while staying in your home. The home can be rented for up to 180 consecutive days and still be covered using a home-sharing endorsement.
As the popularity of home sharing continues to grow, it’s important to remember there is not a one-size-fits-all insurance policy.
Related:
Protecting clients who participate in the sharing economy
6 things to know before signing up with a home-sharing rental site