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Home-Sharing Insurance: What You Need to Know

Two hands selecting a home-sharing room in a tablet to illustrate when do I need home-sharing insurance.

The gig economy has made it possible for a lot of us to make passive income using our cars, skills, and homes. If you are a homeowner and are renting out rooms or your entire home as a vacation rental, or short-term rental, you need home-sharing insurance. Home-sharing is different from long-term rentals, and for that, you would need landlord insurance. Learn more about home-sharing and how it differs from homeowner’s insurance. 

What is Home-Sharing?

Home-sharing is renting a home, or part of a home, to a guest for a fee. The homeowner is usually referred to as a host, and the rental is booked through an online platform, such as Airbnb, HomeAway, or VRBO. 

It is important to understand that when you become a host on a home-share platform, you are not a landlord, you are a small business. In the insurance industry, there is a difference between a landlord and a small business owner.

Do I Need Home-Sharing Coverage?

Yes. The home-sharing platforms do offer home host insurance, but there are limitations. 

What is the Difference Between Home-Sharing and Homeowners Insurance?

According to the National Association of Insurance Commissioners, most homeowner’s insurance policies don’t cover accidents at short-term rentals. When you rent your home, your home is no longer “residential only,” and it can be considered a small business. 

If you are renting out your home regularly, some insurance companies will require that a home-sharing endorsement is added to your existing policy. If your current homeowners’ insurance cannot provide vacation rental insurance, you will need to obtain home-sharing insurance from another provider. 

traveler woman in apartment window home sharing insurance

Homeowners insurance does not cover claims caused by these common home-sharing risks: lost income, personal property damage, personal accident, and criminal activity. Homeowner’s insurance covers you, your pets, and your family members. It does not cover damage done while renting out your home. 

Is Vacation Home Insurance the Same as Home-Sharing?

Insurance companies classify a property as vacant or unoccupied after 30 days of continuous non-residence. Vacation home insurance, or second home insurance, is for homes that go unoccupied for long periods. For example, homes that you would use for summer vacations, winter getaways, etc. Vacation homes can be rented out and used for home-sharing when you are not using them, but that may require separate coverage. You will need to speak with a licensed insurance agent for more information. 

Where Can I Get Home-Sharing Insurance?

We know that the best insurance for short term rentals is customized to your needs while providing protection and peace of mind. Let Freeway Insurance help you find the right home-sharing insurance for you. We do the comparison shopping for you by working with the top insurance companies in the country. Call us or visit one of our offices near you to speak to an experienced agent who can give you a free home-sharing insurance quote.

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