Renting a home out has become a common occurrence as of late. With services like Airbnb, HomeAway and FlipKey dominating the home-sharing landscape, new and unique exposures have become commonplace.

Personal line policies don't come close to fully covering homeowners or renters who put a piece of their homes up for rent on such sites. Many homeowners' policies do allow insureds to rent certain areas of their homes on occasion, but this coverage doesn't extend to theft and rarely covers furnishings and damage.

If the homeowner rents to two or more people, then the coverage becomes even more problematic. As such, many insurance carriers are working overtime to develop coverage solutions for clients looking to stay covered while make extra cash renting on Airbnb.

Here are a few tips you can do if you are facing a similar situation:


Homeowners Endorsements

Many insurance companies have created new policy add-ons to help cover home-sharing exposures. These new changes are referred to as endorsements or riders in the insurance industry and can be added to most existing homeowner insurance plans. The goal of such endorsements is to fill any gap created by sharing a home with short-term tenants.

Many of these policies protect homeowners from short-term tenants stealing valuable electronics or destroying furniture. Essentially, you would be buying extra protection for your personal property. Grey areas are removed, and home-sharing homeowners can feel a peace of mind while making extra money.

Some of these endorsements include up to $100,000 in liability coverage. Most cover appliances, carpeting and much more. Even small watercraft coverage can be extended with some of the policies.


Coverage Replacement

If you are renting out a freestanding secondary residence through home-sharing sites like Airbnb or HomeAway, the coverage can be different. Endorsements typically cover renting rooms or areas in your actual residence. If you have another property, then they may want to look at coverage replacement.

This is a brand new type of coverage created by HomeAway and CBIZ Insurance. The policy allows people who rent full homes on such sites to replace their old homeowner's policy with a policy called HomeAway Assure. The policy is a home-sharing policy that completely replaces a current homeowners plan.

Home-sharing coverage replacement actually covers more than just property, liability and such. These policies cover business personal property and loss of income if damage is done to the property.

For example, if a pipe breaks and floods a home that you rent out, this policy would cover not only damages, but also the loss of income incurred while the home is being repaired.


Keep Home-Sharing Safely

If you use such services and sites, it's imperative you understand the insurance obligations surrounding home-sharing. Many individuals looking to limit their exposures while still making extra money on Airbnb will find these policies to be a great benefit.

Use Airbnb frequently? Contact a professional at Skyline Risk Management, Inc. at (718) 267-6600 to find the proper coverage for your home.