July 19, 2016

Airbnb and other home-share programs have become popular among frequent travelers and homeowners. The ability to rent a cozy room or home in your favorite city, or the opportunity to make a little money for an area of your home you are not currently using, seems like a win-win. 

If you’re thinking about cleaning out that old guest bedroom and transforming it into a comfy home away from home and placing it on a home-sharing site, here’s what you’ll need to know. 

First, find out if the host site you are working with offers any coverage for your home. Sites like Airbnb offer $1,000,000 of host protection insurance. Other sites may require you to provide your own coverage.

Secondly, home insurance policies are created for the single family owner-occupied home. Regularly renting out a home is considered business use and requires a special dwelling fire policy. Meemic homeowner policies allow for rental of your property when it is rented occasionally for use as a residence and rented to no more than two roomers or borders. However, coverage is excluded when you participate in home-sharing networks and home-sharing host activities. Depending on how often the home is rented, the length of the rental, the number of occupants and the amount of money made annually from this service, it could result in a breach of the insurance contract.

You should always speak with your Meemic agent or sales representative before engaging in any in-home businesses to make sure you’re properly covered.

This information is being provided for general informational purposes only. Meemic Insurance Company does not assume any liability in connection with providing this information. Coverage is subject to all policy terms, conditions, exclusions and limitations. Subject to underwriting eligibility requirements. Insurance underwritten by Meemic Insurance Company, 1685 N. Opdyke Rd., Auburn Hills, MI  48326.