Seventy-two percent of Americans have used some type of shared or on-demand online service. As more individuals opt into the sharing economy—especially short-term vacation rentals—it is increasingly important you don’t overlook potential exposures.
Imagine the situation where you decide to rent out your multi-million dollar mountain house in Aspen using a home-sharing platform. During the stay, a guest adjusts the home’s temperature, causing a water pipe to rupture and flood the home. Are you covered?
The first step to answering that question is whether the home-sharing platform offers insurance.
While some platforms offer coverage up to $1 million, this may not be sufficient if you have a luxury home. In fact, the best way to reduce your exposure is to have a holistic risk mitigation plan in place before you enter the sharing economy. Start by thinking like a hotel owner. How will people get out in the event of an emergency? Have I cleared obstacles that could cause a trip or fall?
For more information about how to best protect your home and finances in today’s sharing economy, check out my article on ThinkAdvisor: http://bit.ly/TA217.
Fran O’Brien is Division President, North America Personal Risk Services at Chubb.