Planning to List Your Home on Airbnb or VRBO?
Important Insurance, Risk and Financial Considerations with Short Term Rentals, by Amy DeForeest
According to AIG Private Client Group, a premiere personal property and liability insurance provider, “The sharing economy, marked by peer-to-peer rental of everything from homes and condos to cars and bikes, is on the rise. The consumer peer-to-peer rental market is reportedly worth more than $26 billion”. This “sharing economy” includes popular services like Airbnb and VRBO where one rents out their home for short periods of time through these companies who act as the middleperson between the home owner and the short term renter. At Willis Towers Watson Private Client, we recognize that some of our clients are actively participating in this practice or considering it for the future. From an insurance coverage and risk exposure perspective it is important to note that not all homeowners insurance policies will provide adequate coverage for this exposure and that even if there is coverage, one still must be cautious and mindful of the risk associated with short term renting…
