Allstate has filed plans to offer home-sharing protection in six states – Arizona, Colorado, Illinois, Michigan, Tennessee, and Utah – starting in mid-August.
“This new level of protection is a continuation of Allstate's innovative spirit when it comes to personalizing the customer experience and being a leader in our industry,” said the Allstate senior vice president of product management, Julie Parsons. “We're excited to be first-to-market with this unique coverage option that can help our customers be a part of the home-sharing economy.”
Pending regulatory approval, here's how Allstate said its HostAdvantage endorsement will work:
- It helps fill some of the personal property protection gaps that may exist in a typical homeowners policy for customers who occasionally rent out their homes to temporary renters. The endorsement will help protect homeowners from unexpected out-of-pocket expenses. For example, if a home-sharing renter destroys some furniture or steals electronics.
- The homeowners deductible still applies, but hosts are covered for their personal property up to $10,000 per rental period, subject to the policy terms, conditions, limitations, and exclusions.
- HostAdvantage protection can be added to an Allstate homeowners policy for around $50 per year in the initial six states.
While some home-sharing companies like Airbnb or HomeAway may have coverage options for their hosts, Allstate's HostAdvantage targets the specific needs of its customers who participate in home-sharing and provides an enhancement to a customer's current homeowners policy. Allstate said that it anticipates making this protection available in additional states in 2017.
“Generally speaking, home insurance is pretty broad with respect to coverage for the house itself, so many losses that might occur in an occasional rental situation could be covered,” said Ms. Parsons. “But, personal property coverage doesn't necessarily work the same way. So, if your tenants decide to throw a party and damage your stuff, you'll want to know what might be covered in advance.”
Learn more: https://www.allstate.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].