Munich Reinsurance America, Inc. (Munich Re) today announced a new personal lines homesharing insurance product for hosts who rent their homes out for a profit in the U.S.


Image: Munich Re’s new US personal lines homesharing coverage helps protect hosts and their homes. Photo: courtesy of Tumisu/Pixabay.

The Homesharing Coverage Endorsement helps enhance a personal lines homeowner, renter or condo insurance policy by filling in certain coverage gaps when a home is being rented out.

According to Pew Research, 11% of U.S. adults have now used homesharing services; in 2016 close to 80 million travelers checked into an Airbnb listing, up from 40 million in 2015.

“Homesharing has become a popular lodging alternative for millions of travelers worldwide every day,” said Jason Dunn, Strategic Product Development Manager, Reinsurance Division, Munich Re. “But typical personal lines homeowner policies weren’t built to provide coverage for the homesharing activities of someone who is involved with more frequent for-profit rentals.“

The Homesharing Coverage Endorsement is a product that can be rebranded and attached to a personal lines homeowners, renters or condo policy purchased through a participating insurance carrier. When attached to a homeowners policy, the endorsement broadens the underlying coverage for Dwelling, Other Structures and Personal Property to cover property losses resulting from homesharing activity only. The endorsement provides coverage for homesharing hosts following loss or damage to the insured residence and personal property, as well as liability to others. Additional benefits include:

The policyholder/homeowner is the named insured providing them with policy rights
Additional coverages provided by the endorsement (subject to limits) include: Landlord’s Furnishings, Excessive Use of Utilities, Hospital and Medical Expenses, Bed Bug Infestation Coverage, Homesharing Damage to Property of Others, Claims Expenses due to Homesharing, Vandalism to Neighbors, and Water Damage to Neighbors
Coverage can be tailored to be compatible with participating insurance carriers’ policy forms
“From the specter of a bed bug infestation to excessive utility usage, water damage to a neighbor’s property or an accidental fall down the steps of the covered dwelling by the homesharing guest, a homeowner/host can face costly property damage or an expensive liability lawsuit when they rent their home. Munich Re’s new endorsement will help bridge the insurance gap between personal and commercial coverages and provide additional benefits to help address the needs for this commercial risk,” said Dunn.

Munich Re’s Homesharing Coverage Endorsement is available throughout the United States. Munich Re also offers a U.S. personal lines inland flood endorsement which is available through participating insurance carriers.

Source: Company Press Release