You probably never stopped to consider whether your homeowners insurance would cover property damage or liability claims caused by someone renting your home. Why would you? After all, the last thing most people think about is how an insurance policy will respond to some unknown future loss.

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

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

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

• Damage or loss of personal and structural property.
• Criminal activity, theft and vandalism.
• Liability to guests for property damage or bodily injury that occurs on the premises.
• Liability towards third parties for material or bodily damage 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 don’t 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 may limit or exclude coverage for the host homeowner.

• Eligibility. Standard policies are usually 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 the theft of a guest’s personal property. Standard policies may also limit coverage for some high-priced items located in areas that are rented to others, such as appliances, carpeting, and home furnishings.
• Liability Coverage. Host owners may not think of home sharing as a business, but insurance companies may disagree. This can be a problem because standard policies generally do not provide liability coverage for home-based businesses.

Although not expressly mentioned or excluded, losses suffered by homeowners who are hosts may end up not being covered by their standard insurance. Coverage gaps are common when old-school insurance meets new-school behavior. These gaps can also be financially devastating.

Until the insurance industry can catch up with the from uber Y from airbnb worldwide, potentially significant coverage gaps are likely to remain for home-sharing hosts. In the meantime, if you are or plan to become a homestay owner, you should carefully review current policies to identify potential gaps in coverage. If you are not sure, you should consult an experienced insurance agent.