Home-sharing services have created new sources of revenue for millions of people who've turned their temporarily empty homes and spare bedrooms into short-term accommodations for visitors from around the world. But those same services have also created new concerns for insurers, policyholders, and regulators. Insurers may not be aware of their insureds' activities, policyholders may not be aware of potential coverage issues, and regulators have to deal with a new business model and related risks never considered before. To help insurers address the risks of home sharing, ISO has developed a number of tools and resources:
Advisory Notice to Policyholders: ISO has developed an advisory policyholder notice for use with a base (unendorsed) homeowners policy. This notice provides a mechanism for insurers to advise their policyholders of the extent of coverage provided under their homeowners policies and also encourages notification to the insurer of any home-sharing activity by the policyholder. ISO customers can access the advisory notice online (ISOnet login required).
Home-sharing coverage options: ISO has introduced new home-sharing insurance options that address the growing risks policyholders face when renting their homes online to people they’ve likely never met. The new homeowners coverage options and accompanying rating provisions have been filed on a multistate basis to enable insurers to address a number of exposures that home-sharing hosts face, including: liability; theft; vandalism; and damage to guests’ property. New coverage endorsements provide added protection for homeowners and renters who choose to participate in home sharing. ISO customers can access the coverage options online (ISOnet login required).
White paper on home sharing: We recently published a white paper called Home Sharing: The Other Way to Stay, which includes an analysis of the potential risks that home sharing presents to the insurance industry. For more detailed information on ISO's activity and legislative progress by state, ISO customers can view a related publication in the home-sharing section of the Emerging Issues Portal of ISOnet.
Regulatory activity and emerging issues: Several states have either enacted legislation or regulations for home-sharing services or have legislation or regulations related to home sharing currently pending. Read more about state home-sharing laws and regulations and view other publications in the ISO home-sharing section of the Emerging Issues Portal.