Understanding Insurance Issues

Homeowners Insurance Needs When Offering Home Sharing Services

Home sharing is something that is becoming very popular today, and there are one or two major companies that homeowners can use to offer these services. With home sharing, you basically rent out your entire house or just a room to people who need a place to stay. People rent places like because they are often less costly than hotel expenses and because they offer more comfort, simply because they are homes. If you want to provide this service out of your home, you should understand that it may affect the type of homeowners insurance you need for your house.

Why You Might Need Different Coverage

When you utilize a home sharing service and open up your house to strangers and guests, you instantly take on new risks with your home. You have no idea who the people are that will be staying in your house, and this creates risks. Additionally, your home insurance needs may change simply because home insurance needs change when things change in your home. No matter what changes at your house, there is likely a chance you should update your home insurance policy, especially if the changes present new risks.

The Type of Changes You May Need to Make

Because there is a change in risk level, you should contact your insurance company to find out what you need to protect yourself and home through this new service you are offering. You might discover that your current policy is sufficient to cover the risks you are adding, or you might find out that it is not.

Many insurance companies require that homeowners add an endorsement to their policies to protect them when offering home sharing services. This type of endorsement covers the risks involved with renting out your home, and it will protect you if anything goes wrong from renting out your house or a room to someone.

If you will be moving out of your house and offering it for rent full-time, you will likely need to purchase a renter's insurance policy to cover the risks associated with renting out a house. A renter's insurance policy would offer all the coverage you need in this situation, and this might be the right choice for you.

If you decide to offer home sharing services, you should make sure you get the right type of coverage for it, and you can do so by contacting a home insurance agency.