How Our Sharing Economy Can Create Coverage Concerns
Many people are using VRBO, Airbnb, or other home renting sites. While this may be a great way to have additional income, it could pose issues if you rent out your primary home, condominium or apartment to others for a fee. It may be wise to read through this, and a related article, before you rent out your primary residence. If your home insurance is not recorded as a Landlord Policy, the insurer can deny the claim.
Five Reasons to Re-Think About Our Sharing Economy
- Your homeowner’s, renter’s or condominium insurance most likely will not provide coverage if you rent out your residence. So, if the renter damages your property or burns your home down, you will be uninsured under your homeowner’s policy.
- These sites say they offer some level of insurance, but it is usually secondary to your policy, and most likely will not respond.
- Read your lease or rental agreement; many of these prohibit sub-leasing.
- It may actually be illegal in your city to rent out your residence on a short term basis. Check the zoning laws in your community. If you live in an area with a community association, there may also be regulations to consider.
- By placing pictures of your primary home online you may open yourself up to loss of privacy and it could be a blueprint for criminals.
One final thought, you could also create increased liability if the renter somehow damages your neighbor’s property or injures a third party on your property.
The insurance industry will respond over time to the sharing economy, but in the meantime, there are limitations and restrictions in your current homeowner’s insurance policies of which you need to be aware.
At North Bay Insurance Brokers, we know how hard you’ve worked to turn your house into a home. Since your home is one of the most important financial investments of your lifetime, you’ll need proper coverage in order to keep your investment protected and provide your family with the guarantee that they’ll always be safe and sound.