Our culture has shifted in such a way that people now use their homes and vehicles as a means to make money. Two things that have become popular in recent years are short-term rentals (STR) and ridesharing through transportation network companies (TNC). Insurance companies are accommodating these new income-generating opportunities with the appropriate coverage to protect their clients. At Conner Insurance, we see more and more people engaging in both of these activities, and we’ll go over how this exposes them to a risk of additional liability due to inadequate coverage.
Short-term rentals (STR) are becoming very popular these days. At Conner Insurance, we see more and more people buying homes or renting out rooms within their own homes as a way to make money, such as the use of Airbnb and Vrbo. Whether they are allowing visitors to rent the home for a short amount of time or offering lodging for travel nurses, all these new opportunities may not be included in a standard homeowner’s policy. This exposes the owner to risk since they don't have proper insurance coverage.
It is best to make sure you have a signed contract or use a business, such as Airbnb or Vrbo, to assist with some of these situations. On the homeowner’s insurance side of things, an insurance carrier has certain specifics of what they will allow when it comes to how many days you rent out the home, who is residing in the home, what is the home used for, etc. Carriers offer different endorsements to fully protect the owner, so it’s best to discuss these options with your advisor.
There are many transportation network companies that use an app to pre-arrange rides between drivers and passengers or delivery of goods, such as Uber and Lyft. When you use your vehicle for hire, your personal auto policy will not cover your vehicle. Although Uber and Lyft may offer insurance, there is still a gap in coverage during the time the app is on and driving to the client, but fortunately, many insurance carriers offer an endorsement to provide coverage for this gap. If you decide to use a TNC for income, you should check with your advisor to review your endorsement options to properly protect this risk.
At Conner Insurance, our understanding, experience, and skills, as well as our ability to build relationships and solve problems makes us who we are. Times are changing and we want to make sure that your insurance coverage is changing, as needed, to keep you protected in all circumstances. Contact us at (317) 808-7711 to learn more about us or to schedule a consultation with one of our advisors. We are located in Indiana and serve the whole state, including Indianapolis, Fort Wayne, Carmel, Noblesville, Westfield, Fishers, Brownsburg, and Evansville, as well as provide insurance and benefits to all fifty states.
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