Before listing properties on home-sharing websites, hosts should make sure they have adequate insurance coverage — just in case something goes awry during a short-term rental.
Sen. Bill Monning
Under legislation by Sen. Bill Monning, D-Carmel, companies such as Airbnb, HomeAway and Flipkey would need to post a disclosure about insurance coverage on their websites.
Senate Bill 1092 would require disclosures about the need for the property owner or tenant to review his or her insurance plan to confirm coverage in the event of injury or damage during the rental period.
If the hosting platform provides primary insurance coverage for the rental period, it may provide an alternate disclosure encouraging the host to review that insurance coverage.
The California Apartment Association supports this bill, as many users of home-sharing sites are unaware of the insurance ramifications of using short-term rental platforms should property be damaged or someone get hurt.
Insurance policies vary greatly when it comes to guests and limited periods of commercial use. In some cases, an insurance plan may leave the host liable for injuries or property loss that occurs during a short-term rental.
The disclosure requirement in Monning’s bill builds on CAA-sponsored legislation from last year.
Just as many hosts don’t know if they have adequate insurance, many apartment renters aren’t aware that subleasing their unit violates their lease.
Thanks to CAA-sponsored SB 761, short-term rental companies must post a notice advising tenants to check their rental agreements before listing their rental online.