Renting Your Home or Space Out? Make Sure You’re Covered.

If you are using your home to make extra money through a home-sharing service like Airbnb you are far from alone. According to Airbnb, they now have over 6 million listings worldwide in over 100,000 cities in 119 countries or regions across the globe. On average, every evening over two million people stay in an Airbnb listed property. That’s a lot of properties and a lot of people involved in the process, it also poses a lot of risks.

Many homeowners may not quite understand the full ramifications of listing on Airbnb. First, your house is no longer just your home, but it now becomes a rental property, in essence, a money-making business. You are now dealing with the public and are on some level, responsible for their safety and well-being. If you worry about having a pizza delivery guy trip on your front porch or having a neighbor kid gets hurt on your trampoline, wait until you have the stress of having strangers staying in your home for a few days unchaperoned.

The reality is you will be liable if someone gets hurt on your property. Now you can minimize the financial damage suffered in a liability claim or lawsuit through insurance coverage. Airbnb provides property owners with what it calls its Host Protection Insurance. This provides up to $1 million in coverage in third-party claims of injury or property damage. This sounds pretty good, but there’s more that should be done.

First, if you file a claim on your personal homeowner’s insurance and they discover you have been renting your home out through a home-sharing service, they may not only deny your claim but may cancel your policy, potentially retroactively. So first, it is critical you let your homeowner’s insurance provider know you are involved in home-sharing.

You should be aware that your personal homeowner’s insurance policy may not cover a variety of losses including:

  • Personal property of yours that is stolen or damaged by a guest
  • A guest’s damaged or stolen personal property
  • Property damage done to a neighbor’s property by a guest
  • Injury caused to a neighbor by a guest
  • In the event you are renting out an apartment or condo, damage to the physical building may not be covered

If you are participating in a house-sharing program, contact us and let’s review your coverage and quote you a business or rental policy that can close the gaps. You’ve made a big decision to share your house, now make a smaller one to make sure you are adequately protected.

I Rent, So Why Do I Need Insurance?

Millennials are now the largest segment of our population. They soon will be the largest percentage of our workforce. The “everyone gets a trophy” generation has gotten some bad press, but they are social, socially responsible and tech-savvy. They also don’t like paying for more than they use. This has led to the popularity in ride-sharing, use of rental bikes and scooters and a slower trend toward homeownership. There’s nothing wrong with this philosophy and some view it as a way to minimize obligations and expenses. This can lead to the mistaken notion that if one rents a home or apartment, they don’t need to have insurance.

The fact is that the landlord or property owner may have coverage on the rented structure, but that coverage will likely not cover the tenant’s contents and belongings. Furthermore, it doesn’t relieve the tenant’s responsibility for any injuries that may occur in their home or apartment. The solution? Renters insurance.

What is Renters Insurance?

Renters insurance is a policy that covers those who choose to rent the space they live in. There are three significant ways renters insurance protects tenants.

  1. Personal Property Coverage – Renters insurance will cover the personal property of a tenant due to theft or a natural disaster. These losses can be quite significant when one considers their furniture, clothing, collectibles and expensive electronic devices. Imagine losing your tablet, laptop or smartphone. Have we got your attention?
  2. Liability Coverage – If a pizza delivery person falls while in your apartment there could be more damage than the loss of a pizza. Even an injury to a friend or relative in your rented home can lead to a liability claim. The liability coverage of a renter’s policy protects you from the financial losses associated with a liability claim including legal and settlement costs.
  3. Protection While Traveling – One of the overlooked benefits of renters insurance is the coverage it provides for your belongings while traveling. Should possessions (like that tablet) get stolen while traveling, your renter’s insurance will likely cover it, based on any deductible.

It is Affordable

Millennials and everyone else for that matter will appreciate how affordable renters insurance can be. It can generally be acquired for just a few dollars a week.

Just because you rent your home doesn’t mean you don’t need insurance. The good news is, it is a much cheaper option. Contact us to find out how renters insurance can provide you just a bit more peace of mind.