The VanDyke Group | Airbnb and Home Sharing Risks
The VanDyke Group, The VanDyke Group, Inc., The Van Dyke Group, The Van Dyke Group, Inc., VanDyke Group, Van Dyke Group, Dick VanDyke, Dick Van Dyke, Richard VanDyke, Richard Van Dyke, Matt VanDyke, Matt Van Dyke, Matthew VanDyke, Matthew Van Dyke, Insurance, Insurance Companies, Independent Insurance Agent, Independent Insurance Agency, Insurance Agent, Insurance Agency, Independent Agent, Agent, Agency, Independent Insurance Broker, Insurance Broker, Broker, Brokerage, Homer Glen, Chicago, Chicago Southland, Chicago Suburbs, Chicago Southwest Suburbs, Northwest Indiana, Illinois, Illinois Insurance Agent, Illinois Independent Insurance Agent, Affordable Insurance, Insurance rates, Insurance coverage, Comparison Rates, Coverage, Insurance Policy, Policy, Insurance Quote, Quote, Quotes, Protect, Protection, Insure, Insurance Claim, Insurance Premiums, Claim, Claims, Insurance Deductible, Deductible, Customer Service, Service, Health Insurance, Dental Insurance, Health and Dental Insurance, Health and Dental, Vision Insurance, Employee Benefits, Life Insurance, Disability Insurance, Auto Insurance, Car Insurance, Home Insurance, Homeowners Insurance, Commercial Insurance, Boat Insurance, Travel Insurance, Obamacare, Illinois Healthcare, Health Insurance Marketplace, Exchange Rates, Health Exchange, Healthcare regulations, Healthcare Penalties Healthcare Tax Penalties, Healthcare Legislation, ACA, Affordable Care Act, Umbrella Policy,
single,single-post,postid-17829,single-format-standard,ajax_fade,page_not_loaded,,qode-title-hidden,qode-theme-ver-9.1.3,wpb-js-composer js-comp-ver-4.6.2,vc_responsive
Beach House Room

01 Jun Airbnb and Home Sharing Risks

You’ve got everything set for your rental guests. The linens are clean, the bathrooms are washed and you’ve verified their arrival. But are you ready with your insurance coverage for their stay?

Airbnb is just one of many popular sites to rent out your home and make a little extra money. As convenient as this is, there are potential risks that your current homeowners policy may not cover and you may be left with the property damage and the liability. Your current homeowners policy was drafted without the risks of commercial renting in mind so it won’t cover property damage that’s caused by Airbnb guests.

Each insurance carrier has its own restrictions and policies regarding renting your property, so it is best to go over the coverage limits with your agent to see where there are potential gaps in coverage. Some may require an additional endorsement be purchased while others may want advance notice of rentals. If renting becomes a regular occurrence, your carrier may require a commercial insurance policy be purchased. Another alternative is to check with your insurer if they offer home-sharing liability insurance policies as these can be purchased on a month-to-month timeframe.

But what about the host guarantee that Airbnb has? This program will reimburse eligible hosts for damages up to $1 million. This is not actually insurance and it is subject to a long list of terms, conditions and exclusions. To understand these limits, read the full list of terms and conditions on the company’s website.

There is host protection insurance through Airbnb as well. However, this is also subject to limits and exclusions such as the covering of intentional acts that are not the result of an accident, or property issues like mold and bedbugs. These gaps in coverage would need to be covered by your own policy in order to have full protection.

When you own or rent a condo, verify that you are allowed to sublet or rent out accommodations, as many condo board policies do not allow rentals and failure to comply could result in eviction or legal action against you.

Once you look into the stipulations of coverage and speak to your agent about the correct coverage for your situation, you are ready to sit back, relax and enjoy the extra income.


Source: Zywave, Inc. 2017

Did you enjoy this blog? Subscribe now to receive more!

Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your medical professional or legal representative for information specific to your needs.