Home Sharing Insurance: What Homeowners Need to Know
Home sharing platforms like Airbnb and VRBO have become a popular way to travel, offering travelers a more affordable and authentic alternative to hotels, and giving the hotel industry a run for its money; in fact, 60% of travelers who use both home sharing platforms and hotels prefer the former over hotels when going on vacation. However, as a host, it is crucial to have the correct insurance coverage in order to protect your property and belongings, shield yourself from liability, and ensure the safety and security of your guests.
Why it’s important for hosts to have the right insurance coverage
While Airbnb insurance is a good start, it is not comprehensive. For example, it does not cover damage to your personal belongings, or lost income if your property is damaged and you cannot rent it out. Additionally, standard homeowners insurance policies typically exclude coverage for business activities, such as short-term rentals.
A recent study showed that the average homeowner insurance claim for a home sharing incident is $12,000.
This statistic shows that home sharing can be a risky business, and that homeowners should have the right insurance coverage in place to protect themselves from financial losses.
Types of insurance for hosts to consider
Adding an endorsement to an existing homeowners policy:
Many homeowners insurance companies offer endorsements that can add coverage for home sharing. These endorsements typically cover damage to your property caused by guests, as well as liability claims if a guest is injured while staying at your home.
Business liability insurance:
This insurance can protect you from financial losses if you are sued by a guest for negligence. For example, if a guest slips and falls on your wet floor and breaks their leg, business liability insurance could help cover the cost of their medical bills and lost wages.
Travel insurance:
Homeowners may also want to consider purchasing travel insurance for their guests. This insurance can protect guests from financial losses if they have to cancel their trip or if their belongings are lost or damaged while traveling.
Additional types to consider
- Riders to a homeowner’s insurance policy for lost income and damage to personal belongings.
- Umbrella insurance to provide additional liability coverage.
More tips for staying safe while hosting on a home sharing platform:
- Get to know your guests before they arrive. Ask for their full name, contact information, and the purpose of their stay.
- Screen your guests by checking their references and online reviews.
- Provide clear and concise house rules. This should include information about smoking, pets, and noise levels.
- Take photos of your home before each guest arrives. This will help you document any existing damage.
- Inspect your home after each guest departs. Report any damage to your insurance company immediately.
Should you have any questions regarding your current coverage or want further information on personal lines of insurance offered by Basin Pacific Insurance, click here, or contact us at (509) 765-4785.
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