Airbnd, allows through the internet, home owners or renters to advertise for rent an open space on a couch, a room or an entire house to people who are traveling, perhaps on very small budget.
As a home owner or renter you should be worried about the insurance questions involving one of the biggest players in the land of sharing: Airbnb, which allows you to rent out your whole home (just a room or couch) for as many nights you want.
A good question for those providing the space is how would their homeowners or renters insurance company react if they told the truth about their rental habit? Would they be covered if a paying guest was injured or a wrongful death occurred?
Most insurance companies have clauses in their standard policies that will allow them to deny a claim related to commercial activity going on in a home. You cannot blame the insurers for not wanting any part of the liability and potential risks associated with unknown, unrelated people stumbling around in an insured home - is there really a way to make an appropriate charge on a homeowners policy for the additional risk of lawsuits from this exposure?
This might appear to be the perfect economic solution for young people with student loan debt to make extra money renting out spare bedrooms or couches. Others short on retirement savings who take in guests might also be apt to consider doing this. Of course, travelers get to live like a local for a while and may pay less than they would at a hotel.
It may very well come down to this one question: are you willing to shoulder a legal judgment adding to your money woes? Will companies such as Airbnb or HomeAway provide liability protection to you? You best read their website agreement terms where there are disclaimers, just because you may have a reported statement that these firms have never had a claim, does not mean that you are insulated at all.
If you are considering doing this, please call your insurance agent first to understand how to protect yourself and to find out if you will need to procure additional coverage for this exposure.
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