Hecht Insurance Advisors, LLC Blog
The sharing economy is projected to grow from $15 billion in 2014 to $335 billion in 2025. Even though some localities have enacted regulations to curb this sector, it continues its rapid growth. Unfortunately, people getting into this market space do not realize the underlying risks until it’s too late.
Are you renting out part or all of your home on a home-sharing site like Airbnb? Then proper insurance protection becomes a more intricate and complicated. Many mistakenly believe that a traditional homeowners policy is all the insurance protection they need. Many people fail to recognize that by accepting rental income, their homes have been turned into a business. Without appropriate insurance a significant portion of your personal assets can be at risk.
Home-sharing has implications for all parties involved: the host, who may own or rent the listed property; the host’s landlord, if the listed property is rented by the host; the guest, who books a stay through the home-sharing site; and the home-sharing company, which connects hosts with guests. Not only guests, but hosts as well could incur costs if things go awry. Even if hosts take preventive measures, someone could trip over a rug or slip on a wet floor, causing injury. Accidents can and do happen anytime, anywhere.
If you own a home or even rent a home, it is important to cover your personal property and protect yourself from the liability and consequences of litigation in the event that someone is seriously injured or even dies on your property. Lawyers will not only go after the home-sharing company policy, that you think protects you; but also the homeowners and property owners as well.
Did you know that if you don’t disclose your home sharing activities to your insurer that you could be subject to policy cancellation, even retroactively, if you don’t get caught until you need to file a claim? It is critical that you do your research and work with your insurance agent before jumping on the home sharing bandwagon. Even if you are renting your home just once, once is all it takes. You can’t afford to jeopardize your coverage or your family's financial security.