Airbnb: Will insurance pay for guest injuries?

Of course no one really thinks about if they will get injured on a vacation.  In all actuality, an injury is probably is the last thing someone would think about, but it is a possibility.   A polled survey done by Assurant found that 63% of 1,000 homeowners were unsure as to whether or not if their homeowners’ insurance policy would cover vacation renters.

Home-sharing through sites such as Airbnb has grown in popularity, and experts predict that growth in vacation home rentals could hit 25 percent this year, up from a 19 percent increase in 2016.

However, experts agree that homeowners need to understand their homeowners’ insurance policies – what is excluded and what is covered – particularly in the event of damage or injury.

The biggest gap in understanding when it comes to home-sharing protection is the commercial-use exclusion clause and gaps in coverage. Most insurance companies will deny claims related to home-sharing based on the commercial-use exclusion clause in the homeowners’ policy, though each insurance company approaches the exclusion in a different way. Some policies will cover “occasional home-sharing,” for example, which is often not well defined.

Many home-sharing platforms offer built-in insurance policies, but that coverage may or may not include damage to a neighbor’s property; theft of jewelry, electronics, and other valuables; identity theft, or liability for personal injury to guests.

Insurers should be proactive in communicating to owners the various regulations and laws being enacted by cities and municipalities related to home-sharing activities, including any related to requiring insurance, as well as what policy customizations may be available.

Source: PropertyCasualty360 (07/24/17) Malhotra, Kunal, FloridaRealtors. org, News & Events

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