Advertisement
insurance

Insurance for Home Sharers

Home-sharing services and your homeowners policy may cover liability and damages by tenants, but the insurance may fall short.

Question: I'm thinking about renting out my house through a home-sharing service while I'm away for a few weeks. Do home-sharing services provide any insurance? G.P., Baltimore, Md.

Answer: Home-sharing services may offer some coverage, but ask about limits or gaps. Airbnb provides (free) $1 million in insurance for damages and $1 million for liability. HomeAway provides $1 million in liability coverage at no charge and sells insurance for your building and possessions.

But your homeowners policy may already have you covered for occasional short-term rentals, depending on the insurer and your state. In many cases, insurers will cover damages to your home and liability resulting from brief rentals, but your policy may exclude coverage for theft or damage of your possessions. Some insurers offer extra coverage to fill in gaps—Allstate's HostAdvantage (available in 12 states) costs $50 per year to cover $10,000 of your personal property per rental period. Some insurers don't cover short-term rentals at all. Dennis Hilton, an independent agent in Damariscotta, Maine, says that only two of the six insurers he works with offer coverage for rentals of up to 12 weeks a year. Homeowners need to tell their insurer about plans to rent out their house and verify what the company covers, he says.

Advertisement
Advertisement

Most Popular

11 Dividend-Paying Stocks You Should Think Twice About
dividend stocks

11 Dividend-Paying Stocks You Should Think Twice About

Dividend-paying stocks often can be a store of safety, but 2020 has been difficult on income equities. These 11 picks look like shaky plays despite th…
September 21, 2020
Medicare Basics: 11 Things You Need to Know
Medicare

Medicare Basics: 11 Things You Need to Know

There's Medicare Part A, Part B, Part D, medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare --…
September 16, 2020
Where You Should Invest Now
investing

Where You Should Invest Now

Kiplinger.com senior investing editor Kyle Woodley joins our Your Money's Worth podcast to answer investor questions about tech stocks, the election a…
September 22, 2020

Recommended

When Is Amazon Prime Day 2020?
spending

When Is Amazon Prime Day 2020?

Circumstances beyond its control have forced Amazon to move its annual Christmas-in-July Amazon Prime Day blowout sale in 2020 to ... later. Is Oct. …
September 22, 2020
Insurance for Long-Term Care at Home
retirement

Insurance for Long-Term Care at Home

In the wake of COVID-wracked nursing homes, increasingly more people are looking at options to age in place with long-term care insurance.
September 17, 2020
A Step-by-Step Guide to Being an Estate Executor
retirement

A Step-by-Step Guide to Being an Estate Executor

Whether you’re planning ahead for your own heirs or have been asked to serve as an executor of an estate for someone else, it pays to understand what …
September 17, 2020
How to Get Property Insurance in High-Risk Areas
home insurance

How to Get Property Insurance in High-Risk Areas

From wildfires to hurricanes and riots, some homes and businesses are more risky than others to insure. If you’re having a hard time finding coverage,…
September 15, 2020