What to Know About Home Insurance and Home-Sharing Services

The sharing economy has disrupted a variety of industries, and the hospitality sector is no exception. Home-sharing services like Airbnb have made it possible for property owners to monetize their homes, but this new business model comes with a unique set of risks. Homeowners need to be aware of how their insurance policies may be impacted when participating in a home-sharing service.

Understanding Home Insurance

Before diving into the details of home-sharing insurance, it's important to have a basic understanding of home insurance in general. Your home insurance policy is designed to cover damage or loss to your property or personal belongings. Depending on your policy, it may also provide liability coverage in case someone is injured on your property.

Coverage for Home-Sharing Services

While home insurance policies can vary, many insurance companies are now offering specific coverage options for home-sharing services. These policies are designed to protect your property and personal belongings in the event of damage or theft by a guest. Policies may also provide protection for injuries or accidents that occur during a guest's stay.

Policy Considerations for Airbnb Hosts

If you're considering becoming an Airbnb host, it's important to review your existing home insurance policy and consider purchasing additional coverage. Be sure to disclose your use of a home-sharing service to your insurance provider, as failure to do so could result in denied coverage in the event of a claim. You'll also want to consider factors like whether you want to include liability coverage for guests and whether you want to purchase coverage that protects against cancellations or damage to your property during a guest's stay.