Your current policy probably won’t cover short term renters

If you’re renting out your home through AirBnB or HomeAway, you probably worry about whether your homeowner’s insurance will cover damages or losses from renters. Each insurance company may look at renters differently.

You should always check with your insurance agent to know the limits of your policy. For a one-time, special occasion, such as graduation or a sporting event, you may be perfectly fine, but once you start renting out your home multiple times on an ongoing basis, you may even need business insurance.

Allstate covers the gap

Allstate Insurance has announced that it will be offering a new insurance product called HostAdvantage, which would offer their policyholders more protection when renting out their home.

Currently, this product is only available in six states, Arizona, Colorado, Illinois, Michigan, Tennessee, and Utah. Allstate anticipates that the insurance will be available for even more states in 2017.

The policy can be added to an existing policy for a minimal yearly fee of about $50, and it helps cover gaps in coverage from the homeowner’s policy, like when furniture is damaged or when items in the home are stolen.

Although Airbnb does offer insurance to cover certain acts, there may still be gaps in coverage for a host’s personal property. Airbnb’s insurance does not cover intentional acts, for example, reiterating the importance completely understanding your liabilities as a home-sharing host.

Talk to your insurance agent

I called three Allstate agents and the National Office in Nevada to get more information about the program, but none of the agents returned my call. The representative at the national office referred me to an agent, because the program was new and she was unfamiliar with the ins and outs of it. Not a great start.

Do your due diligence and make sure you have insurance to cover the risks you face when sharing your home.

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