Home Sharing & Your Insurance

What started as a way for roommates to cover their rent has now turned into a $31 billion dollar company.

If you are one of the many people renting out a portion of your home to make some extra cash, have you told your insurance broker or insurance provider?

Renting out a portion of, or all of your home is a significant change to what insurance companies consider personal use of your dwelling. Many standard policies specifically exclude these activities. Failing to inform your insurance company of the change in use can result in a claim being denied and/or your policy being cancelled.

What about the Hosting Sites’ Insurance?

Home rental network companies often offer some coverage as part of each booking for the host. Coverages vary from company to company. However in most case one of limitations of the policy is that they will not provide coverage if the coverage was available to you for purchase and/or until coverage under all other policies (i.e. your personal property policy and the guests’ personal property policy) are exhausted.

What Options do I have to Protect My Home?

Your options will vary depending on your insurance provider. At Craig Hamilton Insurance Brokers we have two options if you plan on renting out part or all of your home on a regular basis.

Aviva Insurance offers a short-term rental endorsements on most of their property insurance policies. The endorsement removes the rental exclusion provision from the standard home insurance policy and includes coverage for loss or damage to personal property caused by a guest. You have an option to choose between renting out your entire home or a portion of it up to 90 days a year or up to 180 days a year.

Premier also offers a comprehensive property policy with an endorsement that removes the rental exclusion. Their policy features coverage for damage caused by and theft by tenants.

Contact us if you are thinking of participating in a home sharing network to discuss your options or to make sure that your current policy is up to date.