Learn about home sharing and your insurance coverage.
With ridesharing, home sharing, and boat sharing companies on the rise, the sharing economy has never been stronger. Individuals are now able to use their personal cars and homes to make a little extra cash. However, merging personal and commercial ventures can get tricky, especially when it comes to your insurance. These car and home sharing activities create gray areas when it comes to insurance. Here’s what you need to know about the latest in home sharing insurance coverage.
Shared Economy Insurance Challenges
In a shared economy, individuals are using their personal property for a business venture. When it comes to insurance, assessing risk is not so easy. Categorizing risk has become more complex. No longer are carriers able to distinguish between personal and commercial risk, and obtaining the necessary coverage becomes tricky. While finding the best coverage solution is still a work in progress, pay-per-use insurance is on the rise across the country. Such coverage helps to give you coverage when you need it. That way you get a customized commercial policy that offers liability coverage and property coverage for your sharing economy business endeavors. However, this type of coverage is still limited. Presently, it’s only offered in a handful of states including Washington, Colorado, Texas, Iowa, Maryland, and Massachusetts.
The companies that facilitate home sharing transactions are typically of little help when it comes to insurance. They offer little to no coverage for any damages to your property.
It’s important to read your insurance policy and call your insurance agent for a review to be sure you are covered, prior to sharing your home, car or boat.
To learn more about homeowners insurance coverage, contact the team at Hoffman Brown Company in Sherman Oaks, California.