Airbnb®, VRBO®, and other home-sharing platforms offer the potential to make money off your home while you’re out of town. These services can help you cover the bills if you’re planning a long vacation while allowing short-term renters to save money and enjoy your neighborhood. However, before using your house to generate income, it’s important to determine whether your homeowners insurance policy extends to your guests.

Homeowners Insurance & Home-Sharing

How Often You Plan to Rent

If you’re only renting out your property once or for a special occasion, many policies will extend coverage to your guests. However, you should ask your agent about your carrier’s requirements, since each insurance company has different ones. For instance, some might ask for advance notice, and others may require you to purchase an additional endorsement on your policy. Homeowners who intend to rent their properties out on a regular basis may need a commercial insurance plan designed to cover business activity.

Liability Claims

If a guest is injured in your home, your homeowners insurance will likely cover their damages, as well as any legal expenses you incur. However, the situation becomes less clear if the accident happens during a short-term rental. If the insurance company denies their claim, the injured renter may be able to take legal action against you directly.

Stolen Property

The standard homeowners insurance policy will compensate you for most property lost to theft or vandalism, but that coverage may not extend to your guests. Likewise, you may not be able to file a claim if a guest steals or damages your property without a specific endorsement on your policy.

Since 1953, K.L. Smith Agency has provided in-depth advice and affordable solutions to homeowners throughout Willimantic, CT. Their agents understand the industry and will help design a policy around your specific needs. Visit their website to learn more about their homeowners insurance services, or call (860) 423-9294 to request a quote.