With the rise of peer-to-peer sharing, companies like Airbnb, VRBO, HomeAway, FlipKey etc. are making it easier for people to find alternative types of accommodation other than hotels when they travel. It’s also a great way for people with spare rooms, cottages, or rental properties to make extra money. But before you dive head-first into the world of renting in the sharing economy, you should take these steps.
First, Talk to Us
Whenever you want to make a change to your home or let someone else use it, talk to us to review your situation and explore all the options that are available. We will be able to guide you through the necessary steps to ensure you’re fully covered.
If you’re looking to get into a home-sharing situation, you need to advise the broker about your intention to ensure you are properly insured. For situations where you want to rent out a property on a longer-term basis, you might post the listing in an online classified section. Your broker still needs to know about these situations!
One more situation to consider is when friend’s house-swap. You should absolutely tell your broker about this situation since you won’t be living in your home full time.
Find the Right Coverage
While the situations we mentioned above can give you a new income or new experience, you might still be left holding the short end of the stick if something happens. That’s why talking to your broker can help you identify where there will be gaps in your coverage.
When it comes to the online home-sharing sites, most of them offer protection for your home and items. However, those only cover a limited amount of damage. When evaluating those policies, ask your broker to look over them to determine where your coverage is lacking.
For renting through classified ads, you’ll need to read each site’s Terms & Conditions carefully. Hardly any of them provide insurance coverage so you’ll likely need to purchase supplemental insurance.
When it comes to creating a new stream of revenue for you and your family, you should never compromise on insurance coverage. You never know when your property might get damaged or someone steals from you. With the help of your broker, you’ll be able to fill in the gaps of your coverage for a comprehensive plan. To learn more about how you can save money on your home insurance premium, contact an experienced member of the Bow Valley Insurance team today for a free, no obligation quote.