Listing on Airbnb May Cause Homeowners Insurance Exclusion

The Sharing Economy and You

Homeowners insurance is an essential protection for those owning real estate.

Among other protections, a homeowners insurance policy can pay to repair or rebuild your home if damaged or destroyed by fire, smoke, or vandalism.  It can also cover personal property stolen from one’s home and injuries a third party may sustain while on the property, including from pets.  And, there are many other ways to benefit from it: Believe it or not, Bill Cosby even used his policy to defend himself.[1]

However, a recently filed case shows that an insurance company may try to exclude coverage when the property is used as a rental, including when a homeowner merely lists their property on a rental service, such as Airbnb.

Notably, such exclusion may not solely be for the period of time a renter stays at the property.  Instead, simply by listing the property, the insurance exclusion may begin immediately and last indefinitely into the future.  Excluded coverage means none of one’s claims are reimbursed by the insurance company.

Airbnb and similar rental services provide new income streams, but at significant risk if insurance coverage is excluded.

Kimura London LLP is an elite Orange County based law firm that represents policy holders when they have been wrongfully denied coverage by their insurance carriers. Strict time limits may apply to a denial of your claim, so you shouldn’t wait. Contact us today at 949-474-0940 and we will respond promptly.

(See Richer v. Travelers Commercial Insurance Company el al., 17CV000777 (Napa Super. Ct., filed July 12, 2017); https://www.law360.com/realestate/articles/945454/airbnb-listing-led-to-wrongful-coverage-denial-suit-says (subscription required).

[1] http://fortune.com/2016/03/14/bill-cosby-homeowners-insurance/