Munich Reinsurance America, Inc., has launched a new personal lines homesharing insurance product for hosts who rent their homes out for a profit in the United States.

In a statement, Munich Re said that the homesharing coverage endorsement helps enhance a personal lines homeowner, renter, or condo insurance policy by filling in certain coverage gaps when a home is being rented out.

“Homesharing has become a popular lodging alternative for millions of travelers worldwide every day,” said Jason Dunn, strategic product development manager for Munich Re's reinsurance division. “But typical personal lines homeowner policies weren't built to provide coverage for the homesharing activities of someone who is involved with more frequent for-profit rentals.”

In a statement, Munich Re said that its homesharing coverage endorsement is a product that can be rebranded and attached to a personal lines homeowners, renters, or condo policy purchased through a participating insurance carrier. When attached to a homeowners policy, the endorsement broadens the underlying coverage for dwelling, other structures, and personal property to cover property losses resulting from homesharing activity only. The endorsement provides coverage for homesharing hosts following loss or damage to the insured residence and personal property, as well as liability to others.

According to the company, additional benefits include:

  • The policyholder/homeowner is the named insured providing them with policy rights;
  • Additional coverages provided by the endorsement (subject to limits) include landlord's furnishings, excessive use of utilities, hospital and medical expenses, bed bug infestation coverage, homesharing damage to property of others, claims expenses due to homesharing, vandalism to neighbors, and water damage to neighbors; and
  • Coverage can be tailored to be compatible with participating insurance carriers' policy forms.

“From the specter of a bed bug infestation to excessive utility usage, water damage to a neighbor's property, or an accidental fall down the steps of the covered dwelling by the homesharing guest, a homeowner/host can face costly property damage or an expensive liability lawsuit when they rent their home. Munich Re's new endorsement will help bridge the insurance gap between personal and commercial coverages and provide additional benefits to help address the needs for this commercial risk,” said Mr. Dunn.

Munich Re's homesharing coverage endorsement is available throughout the United States, Munich Re said.

Victoria Spears

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].

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