Airbnb is the new ‘it’ thing when looking for cool digs to stay when you’re out of town or looking for a change in scenery. Want to stay in a condo in the middle of downtown? No problem. A quick search on Airbnb and you could find a condo and rent it in just a couple of minutes. This is the new fad. Random strangers can now list their house to be rented for days or even weeks and make money off of it. Have an extra bedroom that no one uses? List the bedroom on Airbnb and make easy money from people needing to crash for the night. Before you sign up double check the gray areas where you may or may not have protection.
When you sign up to as a host home on Airbnb or similar companies make sure to double check what the host protection insurance does cover. Most homeowner’s policy will automatically not cover any damage or liability that may arise from renting out your home. Insurance companies look at this as a commercial activity. If you do plan on participating in Airbnb, be up front with homeowner insurance companies. By not detailing those types of operations, you could be putting yourself at risk to have coverage denied at some point. With Airbnb the host protection insurance provides primary liability for up to $1,000,000 for each occurrence for a third party. This would be if a guest trips on the rug and is injured. This would not be for someone intentionally punching the wall. Airbnb also offers a Host Guarantee package that protects the host in instances of property damage to their own possessions, unit, or home by a guest staying in the space. This would be what covers the punched in wall. Certain types of property are covered in a limited amount such as jewelry, collectibles, and artwork. If you’re a guest staying be sure to read the fine print. The sharing sites often give the company the right to file claims with the guest’s insurer if he/she causes damage to the property being rented.
The world is changing. Sharing economy is the new normal. It’s easy to keep yourself protected in this changing environment, it’s just important to keep on top of the details. If you have questions regarding your Oklahoma homeowners insurance, ECI is always here.