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What to Know About the Sharing Economy

Have you considered becoming an Airbnb host or an Uber driver?

Developments in technology and the sharing economy are creating new opportunities—but what many people don’t realize is that these opportunities are not only for making money. There are also increasing opportunities for loss and liability—which can be devastating without adequate insurance coverage.

We’ll take Airbnb as an example. The company provides $1 million in host liability coverage—but that may not be sufficient if an incident arises. Many people are unaware what sort of liability coverage their homeowners or renters insurance policy offers, exposing them to potential insurance gaps that could have a lasting impact on their finances.

If you’re an Airbnb host—or are considering becoming one—follow these tips to protect yourself and your guests.

  • Review Airbnb’s Host Protection Insurance—or contact Airbnb directly—so you are sure you understand exactly what is covered (and what is not).
  • Contact your insurance company that to find out if there are any factors in renting out your home that could impact your insurance coverage (for instance, does it make a difference if you are at home while people are renting part of the residence? Does it matter how many people you’re hosting?).
  • Be sure to pinpoint whether renting out your home through Airbnb is considered a business use or not. If your insurance company considers it a business use, your homeowners insurance policy may not provide coverage if an Airbnb guest is injured on your property.
  • If there is an issue with your homeowners insurance providing coverage, inquire about an endorsement to your policy, or other coverage options, which can provide the protection you (and your guests) need.

For more than 25 years, Beall Financial and Insurance Services, Inc., has been helping corporations and individuals protect their most important assets. The agency’s client base covers a spectrum of businesses that require specialized insurance packages and knowledge. With offices in California and Indiana, Beall Financial and Insurance Services serves clients nationwide.