Are you covered for the sharing economy? Likely no

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Uber and Airbnb have emerged as the leaders of the sharing economy. 

More people than ever are branching away from traditional hospitality services such as hotels or taxis. Instead, consumers are opting for cheaper home or ride sharing services. 

But peer-to-peer sharing companies are not sharing the risk. Instead, they often push damage claims to the personal insurance policies of hosts or drivers.

Airbnb, which has had nearly 20 million guests, offers free $1 million liability coverage that covers its hosts in the United States. But this coverage is “secondary,” meaning the company asks hosts to pursue claims through their personal policies, according to a New York Times report

With the rise in these services, comes the horror stories. There have been reports of thefts, damage and injury. 

Airbnb has said in interviews that problems are rare, but it employs a “Trust and Safety team” to monitor potential issues. 

What many homeowners may not realize is that their policy likely does not cover commercial activity, leaving them vulnerable. 

If a problem comes up during a rental, will Airbnb honor its liability coverage? No case has yet popped up.