Want to be an AirBnB Host or Start Your Own Uber business?

At Brew City Insurance it is our mission to offer customers a truly exceptional insurance buying experience. We provide our customers with the knowledge to choose the best possible insurance products that fulfill their wants and needs. Our friendly, knowledgeable and professional staff will help inspire, problem-solve, and best of all EDUCATE our customers so they can choose the coverage that best fits at a reasonable price.

We live in a ever-changing world where "sharing services" have becoming the new normal. We share our cars with services like Uber and Lyft. And we share our homes with Airbnb. The problem is that the standard insurance policy does not cover "sharing" cars or homes.

Uber, Lyft, Sidecar, or any ride sharing service.

Plain and simple - your standard auto insurance policy does not cover using your car as a taxi, limo, or any other service that takes money in exchange for a ride (called "livery service" by the insurance companies).

While some these ride share services can offer some sort of coverage while you are actually "in the process" of giving a ride there have been lawsuits over what happens when you are going to or from a location to pick up a passenger. Your insurance company believes that you are actively "on the clock" the second you accept the fare and Uber does not cover you unless you have an actual passenger. So basically NO ONE will cover you during this "grey area".

Bottom Line

As a driver you MUST get some sort additional coverage if you decide to work for any of these services. Nearly every single insurance company excludes coverage. However, the "grey area" is still a risk. Also ~ if you don't tell your insurance company that you're part of these services and something happens ~ not only are you not covered but you will likely be dropped altogether.

An important thing for customers of these services to remember is that you have NO idea if the person driving has any sort of valid insurance should you get injured in a crash!

As an Airbnb host you always run the risk of having problems.

While most guests are wonderful, there are plenty of unfortunate tales. Among the litany of Airbnb host stories on sites like "AirBnB Hell" you’ll come across, many people find fault with the insurance policies offered by Airbnb.

From the Airbnb terms of service: "Airbnb recommends that Hosts obtain appropriate insurance for their Accommodations. Please review any insurance policy that you may have for your Accommodation carefully, and in particular please make sure that you are familiar with and understand any exclusions to, and any deductibles that may apply for, such insurance policy, including, but not limited to, whether or not your insurance policy will cover the actions or inactions of Guests (and the individuals the Guest invites to the Accommodation, if applicable) while at your Accommodation."

Note that they use the term "Guest". This is misleading at best. What they should say is RENTER. The insurance industry does not support the new "sharing services" terminology.
So for those of you RENTING your homes through Airbnb, YOUR INSURANCE HOMEOWNERS DOES NOT COVER YOU!
WHAT'S THAT?? You say? I pay my insurance! You say! Well, if you read your home owners insurance policy it implicitly excludes using your home as a rental. All homeowner’s policies carry a “business pursuit’s" exclusion.

FAQS (and nothing but the FAQS)

Here are some FAQs if you do decide to use your home as a AirBnB (rental). Let me say in each and every case you will have to call your agent to verify exactly what your specific policy covers.

Q: Am I covered by my homeowners insurance if I rent out my home for a one-time event?
A: You may be covered if you're renting your property for a single, special occasion but different insurers have different requirements.
Q: What about if I'd like to rent out my home multiple times?
A: If you're planning to rent your place for short periods but on an ongoing basis, most insurers consider that a "business" and require you to purchase business insurance. If you're planning to rent your home for a longer period of time you will likely also need a commercial policy.
Q: Is the personal property of a paying guest covered by my homeowners insurance policy?
A: NO. The property of a paying guest would not be covered by a typical homeowners policy. If something, such as a fire, occurs while a paying guest is staying at your home, the paying guest would need to look to their own renters or homeowners policy for the loss of their own property if they have one.
Q: What if a paying guest steals during their stay?

A: NO. There are typically exceptions on a homeowners policy for theft when the theft takes place in the part of a residence that is being rented to a paying guest. Even worse, things like cash, credit cards and identity thefts are likely excluded all together.

Q: What if my guest damages my property?
A: NO. Your policy most likely won't cover these types of damages, either. For example, if the paying guest knocks over and breaks a lamp while staying at your home, your homeowners insurance won't consider it and your deductible is probably $500 so it would have to be one expensive lamp.
Additionally, because most homeowners and renters policies exclude property damage to a rental property, the paying guest may not have coverage through their own homeowners or renters insurance if they do damage your property. You would want to make sure your paying guests have the capacity to pay for any damage they may cause to your property (can you say a BIG deposit?).

Bottom Line

Talk with your insurance provider to understand what your existing homeowners policy may or may not cover. Ask what exclusions might apply. Do a thorough interview of anyone before you give them access to your home. Most home sharing sites offer a screening service that gives you an overview of a candidate's background, but you likely want to go further, asking for identification, doing reference checks, asking for deposits (much like you would do when taking on a rental tenant as a landlord). You should also require any paying guests to have their own homeowners or renters insurance policy and check to see what their policy covers (liability, for instance) and consider whether their insurance is extensive enough to help you avoid any undue risk.
The risk with all of these types of "sharing" services is that if something bad should happen your insurance company might not cover the loss and may even cancel your insurance as well! Call your independent agent and find out what you are covered for.

Want to make sure you have the right coverage??

Come into Brew City Insurance and find out.

Come in to Brew City Insurance for a no-obligation insurance review.
Brew City Insurance Agency Inc. is located at:
2937 S Chicago Ave. in South Milwaukee between Pick N Save and Walgreens.
Stop in today and see what we can do for you!
Or call 414-762-6600 and we can quote you right over the phone.
We have several companies to choose from.
We can also cover you if you do decide to open a business.
Visit our web page at - http://www.brewcityinsurance.com,
Or find out even more about us here.