You probably never stopped to consider whether your homeowners insurance would cover property damage or liability claims caused by someone who rents your home. Why would you do it? After all, the last thing on most people’s minds is how an insurance policy will respond to some unknown future loss.

Home sharing services such as Airbnb Y Far from home they have turned many ordinary owners into part-time innkeepers. The Pew Research Center found that 11% of American adults have used shared housing services. Airbnb it only boasts of having over 3 million ads worldwide.

This means that an increasing number of you Need stop and consider whether claims involving renters are covered by your homeowner’s insurance. Unfortunately, the excitement and opportunity that new business models create make it all too easy to overlook the downsides.

That being said, there is forever a disadvantage. For example, host homeowners face increased exposure to:

• Damage or loss to personal and structural property.
• Criminal activity, theft and vandalism.
• Liability to guests for property damage or bodily injury occurring on the premises.
• Liability to third parties for property damage or bodily injury caused by guests.

This brings us back to our original question. Does a standard homeowners insurance policy cover damage and liability claims involving renters?

You shouldn’t be surprised to learn that standard homeowners policies do not directly address home sharing. After all, today’s sharing economy didn’t exist when most of these policies were written. However, there are some traditional provisions in standard policies that could limit or exclude coverage for the host owner.

• Eligibility. Standard policies are typically restricted to homes that are used exclusively for private residential purposes.
• Damage to property. An owner’s personal property that is stolen from areas that are rented to guests is generally not covered by a standard policy. Neither is theft of a guest’s personal property. Standard policies can also limit coverage for some expensive items located in areas that are rented to others, such as appliances, carpets, and home furnishings.
• Liability coverage. Host owners may not think of sharing as a business, but insurance companies may not agree. This can be a problem because standard policies generally do not provide home-based business liability coverage.

Although not expressly mentioned or excluded, losses suffered by homeowners can end up not being covered by your standard insurance. Gaps in coverage are common when old-school insurers grapple with new-school behavior. These gaps can also be financially devastating.

Until the insurance industry can catch up with Über’s Y Airbnb worldwide, potentially significant coverage gaps for hosts who share a home are likely to remain. In the meantime, if you are or plan to become a homestay owner, you should carefully review your current policies to identify any potential coverage gaps. If you are unsure, consult an experienced insurance agent.