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Will insurance pay if an Airbnb guest is injured?


NEW YORK – Aug. 2, 2017 – A recent survey by Assurant found that 63 percent of 1,000 homeowners polled were unsure whether their homeowners' insurance policies covered 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

© Copyright 2017 INFORMATION INC., Bethesda, MD (301) 215-4688


Related Topics: Property insurance