How Does Home-sharing Insurance Work?

hands using tablet to look for airbnb

We’ve all heard about the different types of insurance policies — homeowners or mortgage, renters, auto, and so on. Although home-sharing insurance is another common option, some people don’t know what it is or how it works.

What Is Home-sharing Insurance?

In simple terms, this insurance provides different protection when renting out a property you own to other people. For that reason, you might hear it called Airbnb insurance. If you and your family live in a primary residence, but you also run a home-hosting service, there’s a good chance your provider will offer homeowner’s insurance with an Airbnb clause.

Keep in mind that home-sharing insurance isn’t the same as renter’s insurance. In that case, the tenants of the property will be responsible for purchasing and paying for a policy that covers their personal belongings. As for the structure, that would fall under your mortgage insurance policy.

Even if you and your family use the shared property from time to time, if you rent it out to other people, you need an Airbnb insurance policy. One important note: Typically, if something’s damaged or stolen by a family member, your homeowner’s policy would cover it. However, if you rent to complete strangers, you want additional peace of mind provided by an Airbnb insurance policy.

How Does a Home-sharing Policy Work?

Before you decide to take out a policy for home-sharing, talk to your insurance provider to see if your standard homeowner’s plan already includes this type of coverage. Sometimes it does, but that’s not an automatic guarantee. If not, you’ll need Airbnb insurance.

Just as you would with any insurance, for a home-sharing policy, you would simply purchase one from your current insurance company. If they don’t offer this coverage, you can go to a provider that does. Your agent will help you determine the amount of protection needed based on the property value, its contents, and your preference.

If you need to file a claim against your Airbnb insurance policy, an adjuster will assess the damage or the renter’s statement about sustaining a personal injury. Your best bet is to file a police report right away. You’ll also want to gather as much information and documentation as you can about the incident to share with your insurance agent.

If it’s determined that your guest stole or damaged something or that person sustained an injury, the policy will kick in. If not, the provider would deny the claim. For theft and damage, you may need to take legal action against the responsible party to recoup your loss.

Remember, before you decide to take out a policy for home-sharing, talk to your insurance provider first. Most importantly, discuss liability since that’s a big portion of what home-sharing insurance is all about.

towels on bed in airbnb room home sharing insurance

The Growing Need for Airbnb Insurance

Today, an increasing number of people are getting involved with home-sharing. After all, it’s a great way to earn a lucrative income and have a place to enjoy whenever you want. When it comes to Airbnb host tips, along with providing guests with a nice place to stay, including all the amenities of home and excellent customer service, you must have the proper insurance protection.

As stated on Airbnb’s website, around 7 million listings currently exist around the globe. Here’s the deal. Let’s say you rent to guests as part of your home-sharing service. Someone decides to steal the television from the property. Because most insurance providers consider that individual as a “boarder, tenant, or renter,” your standard homeowner’s policy wouldn’t cover the loss.

Now, you may have some recourse through your mortgage insurance, but more than likely, there’s a cap. Therefore, to protect the property, meaning damage or theft, as well as a personal injury claim against yourself, home-sharing insurance is imperative.

Choose a Reputable Insurance Provider

Among the best Airbnb host tips, a home-sharing policy has some exclusions. A couple of examples include asbestos, pollution, defamation of character or slander, intentional acts, and even bed bugs.

Confused about the process? At Insure One we can help you navigate the insurance maze and find the best coverage for your needs. Get a free homeowners insurance quote online or by calling us at 800-836-2240.