Introduction

Definitions

Property coverages

Additional coverages

Perils insured against

Conditions

Section II exclusions

Section II conditions

Sections I and II conditions

 Introduction

 As mentioned in the article on the home-sharing exclusion HO 06 53 02 17, there are many issues involved with sharing one's home. Deciding who to allow to stay, what services to provide, potential damage to premises, injury to guests, and theft of property of either the host or the guest are all issues in renting one's home to others.

 Insurance is designed to protect the homeowner and residents living with her, and occasional guests the homeowner knows. Friends and relatives who visit are different than strangers paying in order to stay at the premises, and they are different from tenants, roomers, or boarders. Because of these issues ISO has developed a number of endorsements to clarify what is and is not covered under the policy. The endorsements are numbered to match the forms they attach to; HO 06 62 02 17 attaches to the HO 00 02, HO 06 63 02 17 attaches to HO 00 03 and so forth. The endorsements vary mildly based on the form they attach to; otherwise, they are identical. Many parts of this form are identical to the exclusion HO 00 06 53; the explanations are repeated here for the readers ease.

 Definitions

 A.The following definitions are added:

1."Home-sharing host activities" means:

a.The:

(1)Rental or holding for rental; or

(2)Mutual exchange of services;

of the "residence premises", in whole or in part, by an "insured" to a "home-sharing occupant" through the use of a "home-sharing network platform"; and

b.Any other related property or services made available by an "insured" for use during such:

(1)Rental; or

(2)Mutual exchange of services;

except those property or services provided by another party.

2."Home-sharing network platform" means an online-enabled application, web site or digital network that:

a.Is used for the purpose of facilitating, for money, mutual exchange of services or other compensation, the rental of a dwelling or other structure, in whole or in part; and

b.Allows for the agreement and compensation with respect to such rental to be transacted through such online-enabled application, web site or digital network.

3."Home-sharing occupant" means a person, other than an "insured", who:

a.Has entered into an agreement or arranged compensation with an "insured" through the use of a "home-sharing network platform" for "home-sharing host activities"; or

b.Is accompanying or staying with a person described in Paragraph 3.a. of this provision under such "home-sharing host activities".

B.Definition B.3. "Business" is replaced by the following:

3."Business" means:

a.A trade, profession or occupation engaged in on a full-time, part-time or occasional basis;

b."Home-sharing host activities"; or

c.Any other activity engaged in for money or other compensation, except the following:

(1)One or more activities, not described in (2) through (4) below, for which no "insured" receives more than $2,000 in total compensation for the 12 months before the beginning of the policy period;

(2)Volunteer activities for which no money is received other than payment for expenses incurred to perform the activity;

(3)Providing home day care services for which no compensation is received, other than the mutual exchange of such services; or

(4)The rendering of home day care services to a relative of an "insured".

C.In this Policy, the terms:

1.Roomer;

2.Boarder;

3.Tenant; or

4.Guest;

do not include a "home-sharing occupant".

 Analysis

 The definitions here are identical to those found in the exclusion. The first is "home-sharing host activities," which is the rental, holding for rental, or mutual exchange of services of the residence premises by an insured to a home-sharing occupant through the use of a platform designed to allow such transactions. Related property or services made available by an insured for use during such rental or exchange of services are also included in the definition of "home-sharing host activities." If the hosts stock the refrigerator with food and snacks before the guests get there, provides breakfast every morning, or does laundry for the guests, those other services are part of the host activities.

 A "home-sharing network platform" in the online-enabled application, digital network, or website that facilitates the transaction between parties for the host to put his premises up for rental in exchange for payment. The platform accepts and transfers payment to the hosts and allows hosts and guests to find each other and arrange for the rental.

 "Home-sharing occupant" is someone other than an insured who has entered into an agreement or arranged through a platform to rent the premises of an insured. It also includes someone accompanying the occupant under the home-sharing agreement. Ralph may make arrangements to rent a home over Valentine's weekend to propose to his girlfriend; she is considered a home-sharing occupant as well. Likewise, if Mom arranges a vacation for the family, everyone in the family is considered a home-sharing occupant.

 The definition of "business" needs to be changed because depending on frequency of rentals, a host could readily fall into becoming a business. "Home-sharing host activities" are added into the definition of "business" with trades, professions, or occupations engaged in on a full-time, part-time, or occasional basis. The rest of the definition of "business" is the same, with volunteer activities, day care for mutual exchange of services, and day care for relatives not being considered a business. The inclusion of host activities as a business is important because this will be impacted by liability coverage.

 The form also states that the terms "roomer," "boarder," "tenant," or "guest" do not include a "home-sharing occupant." There are particular coverages or exclusions for roomers, boarders, tenants, or guests, and "home-sharing occupants" receive different coverage based on this endorsement. For clarity the different types of visitors need to be distinguished.

 Property Coverages

 SECTION I – PROPERTY COVERAGES