If I rent out my house through a service like AirBnB, how does it impact my insurance coverage?
More and more often homeowners are considering renting out their home for a short or long period of time through hosting sites like AirBnB, HomeAway, and VRBO. While this may be a nice way to earn some extra money, you need to be aware of the increased risk exposure and the possible insurance consequences.
Most hosting sites typically do not provide any type of liability insurance for a renter that is injured on your property. Whether or not your own Homeowner policy will provide coverage in situations like these depends on the scenario. Some of the key questions include: How often is the home being rented out? How long is the rental agreement? Are you still living in the home and renting a room out periodically? Depending on the situation, you may be able to add a specialized endorsement for coverage or you may need to purchase a separate insurance policy to cover the added exposure.
Another potential impact of hosting is that coverage is commonly excluded for theft of contents (including cash, securities, and other valuables) while someone is renting your property. Your Independent Insurance Agent can help determine if a separate policy or endorsement is available to add this coverage to your insurance. To locate an Independent Insurance Agent near you, click here.