Materials - National Association of Insurance Commissioners

Transcription

2015 Summer National Meeting
Sharing Economy (C) Working Group
August 15, 2015
Chicago, Illinois
© 2015 National Association of Insurance Commissioners
Attachment A
Consider Adoption of July 22 Minutes
1
Attachment A
Attachment -Property and Casualty Insurance (C) Committee
8/17/15
Draft: 8/6/15
Sharing Economy (C) Working Group
Conference Call
July 22, 2015
The Sharing Economy (C) Working Group of the Property and Casualty Insurance (C) Committee met via conference call
July 22, 2015. The following Working Group members participated: Dave Jones, Chair, Joel Laucher and Durriya Syed
(CA); Bobbie Baca, Vice Chair (CO); George B. Bradner (CT); Anna Krylova (NM); James Mills and Cuc Nguyen (OK);
Paula Pallozzi (RI); Melinda Willis (VA); and Lee Barclay, Molly Nollette and Alan Hudina (WA). Also participating were:
Sandra Starnes (FL); Justin K. Durrance (GA); Richard Piazza and Warren Byrd (LA); Joy Hatchette (MD); Joan Dutill
(MO); Laura Arp (NE); Amy L. Parks (NV) and Pearl Zuckerman and Ted Anastasiou (NY).
1.
Adopted its Spring National Meeting Minutes
Ms. Pallozzi made a motion, seconded by Ms. Parks, to adopt the Working Group’s March 28 minutes
(see NAIC Proceedings – Spring 2015, Property and Casualty Insurance (C) Committee, Attachment Seven). The motion
passed unanimously.
2.
Heard Presentations from Home-Sharing Companies
a.
Airbnb
David Owen (Airbnb) stated that Airbnb was founded in 2008 by two gentlemen who hosted a bed and breakfast in their
apartment during a design conference in San Francisco. The founders initially utilized Craigslist to rent out space in their
apartment for guests to stay on air mattresses. Airbnb began as Air Bed and Breakfast and was designed for travelers seeking
accommodations outside of the traditional hotel stay. Mr. Owen stated that Airbnb is a platform that connects hosts with
guests. To date, nearly 40 million guests have utilized Airbnb to find temporary housing around the world. The average
Airbnb host has lived in his/her home for at least 19 years. The vast majority of hosts are primary residents of the location
listed on the website. Approximately 50% of the hosts have stated that they utilize the income earned through Airbnb to
retain ownership of their home.
Sharda Caro (Airbnb) stated that Airbnb currently offers two types of protection programs to its community of hosts and
guests. The first, host protection insurance, is an insurance product launched in January 2015 and underwritten by United
Specialty Insurance Company (United Specialty). For all states except Illinois and New York, the limits are $1 million per
occurrence, $2 million per location and $10 million in aggregate. The insurance provides liability coverage to Airbnb and its
hosts for third-party bodily injury or property damage. In order to qualify as a covered occurrence, the event must take place
at a rental site listed on Airbnb’s website and occur during a stay booked through its Web portal. The policy includes
exclusion of personal injury associated with claims of defamation, libel and advertising, in addition to the typical conditions,
limitation and exclusions of a standard commercial general liability policy. Host protection insurance is only offered in the
U.S. Coverage is provided for landlords and homeowners associations for third-party injuries during a covered stay, where
applicable. Host protection insurance is secondary to coverage otherwise provided and is not a substitute for a homeowners
policy. There is no additional cost to hosts for coverage under the policy and Airbnb pays all applicable deductibles. No
deductibles are ever paid by the host or landlord. Claimants file through the Airbnb website, which is then immediately
transferred to the claims department at United Specialty. Crawford and Company is a third-party administrator contracted to
conduct the claims process including communication with all parties to the claim and any alternate insurance providers
applicable to the claim.
The second coverage offered by Airbnb is host guarantee that has been in existence for approximately three years. Airbnb
offers host guarantee coverage directly to its hosts. The host guarantee provides coverage for up to $1 million in property
damage coverage. The host guarantee is not an insurance product; it is offered by Airbnb directly to its hosts. Airbnb agrees
to reimburse hosts for property damage if the guest responsible for damages refuses to pay restitution. There is no additional
cost to hosts or guests for the guarantee. Airbnb has a resolution tool available on its website to recover for damages through
the host guarantee. The host guarantee is currently available in approximately 25 countries.
1
2
Attachment A
8/17/15
Ms. Caro stated that both products apply at no cost to Airbnb guests, host and landlords, no deductibles apply to either
program and both products apply regardless of the frequency of rental. She stated that hosts and landlords have a potential
gap in coverage for bodily injury claims by their guests, or visitors of their guests, due to a typical exclusion found in
homeowners policies for rental of the covered property. The standard homeowners policy will provide coverage for
occasional rental; however, more than occasional rental is typically excluded.
Commissioner Jones asked for the average time to resolve claims under each program, as well as the percentage of claims
paid and denied under the host protection policy. Ms. Caro stated that less than 20 claims have been filed since the host
protection insurance was introduced in January 2015. Ms. Caro stated that, currently, all claims submitted are pending
approval. Commissioner Jones asked if the host or guest must first be denied coverage by his/her homeowners insurer before
United Specialty’s coverage would be considered. Ms. Caro stated that the claims administrator does seek out additional
insurance applicable to the claim.
Mr. Laucher asked if there is any agreement with the guests regarding liability or release of liability for bodily injury or
property damage. Ms. Caro stated that there are provisions regarding liability for damages in the general terms and conditions
that must be agreed to before a guest can book a stay through the website. Additionally, the host may require guests to pay a
security deposit for rental of the property. She stated that accidents to visitors of the guest at the rented property were
contemplated when designing coverage under the host protection program and such incidents are covered under the policy.
Ms. Caro stated that if a guest were to throw a party at a property rented through Airbnb, property damage and bodily injury
would be covered under the host protection coverage.
Mr. Zuckerman asked about the host protection coverage in New York. Ms. Caro stated that Airbnb has set up risk
purchasing groups in Illinois and New York, which is why the liability limits differ in those states. The liability limits in
Illinois and New York are on a per-member or host basis instead of general liability aggregate limits or per-location limits.
Commissioner Jones asked what caused the company to design the insurance program differently in those states. Ms. Caro
and Mr. Zuckerman explained that the reason for this variance is due to the regulatory and statutory restrictions on the use of
group policies in New York and Illinois.
Ms. Dutill asked for clarification on the terms “host” and “landlord.” Ms. Caro clarified that the host is the person who lists
the property on the Airbnb website. The landlord is the owner of the property. A host may be the owner or a lessee of the
property.
Amy Bach (United Policyholders) asked if any of the 20 claims that have been filed under the host protection coverage have
been for bodily injury. Ms. Caro stated that the claims submitted to date have been primarily for minor bodily injury claims.
Ms. Bach asked if there is another layer of insurance above the $1 million per occurrence. Ms. Caro stated that there is no
additional coverage provided above $1 million per occurrence, $10 million in aggregate.
b.
HomeAway
Jeff Hurst (HomeAway) stated that HomeAway is a publicly traded company founded 10 years ago. It is a global company
operating in more than 190 countries. The three primary sites owned by HomeAway are homeaway.com, vrbo.com and
vacationrentals.com. A majority of listings offered by HomeAway are secondary or vacation homes and located in popular
vacation destinations. Mr. Hurst stated that HomeAway is not a party to the transactions between its property owners or
managers and the traveler. He said that HomeAway is a marketing venue that merely introduces the two parties to the
contract. HomeAway is often not privy to the final terms and conditions reached by the property owner and traveler and, as
such, it is only providing tools to facilitate the exchange of information between the parties to the contract.
Mr. Hurst stated that HomeAway advertises two travel insurance products from CSA Travel Protection and Insurance
Services (CSA) underwritten by Generali USA. The first is a travel insurance product marketed as cancellation protection.
The second product is damage protection that the homeowner may choose to accept in lieu of a security deposit. The guest
would need to purchase damage protection insurance through CSA. The guest can elect to purchase the coverage on the
HomeAway site, but payment is made directly to CSA.
Mr. Hurst stated that HomeAway also markets an insurance product for the more than occasional rental on its website. The
product is only available by contacting CBIZ directly and is a commercial vacation rental policy. The coverage is an annual
policy designed to replace a homeowners or dwelling policy. The named insured is the owner of the property and the limits
2
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Attachment A
8/17/15
are chosen by the policyholder, although the standard limit is $1 million per occurrence. Mr. Hurst stated that HomeAway
does not offer any insurance or guarantee protection.
Mr. Bradner asked if the coverage is provided in all countries where the company currently operates. Mr. Hurst stated that the
described coverage is available in the U.S., but HomeAway offers similar products in other countries, as well. Mr. Laucher
stated that CBIZ Insurance Services, Inc., is a broker and asked if it places coverage with a number of insurers or if it places
all coverage with one particular insurer. Scott Wolfe (CBIZ) stated that, primarily, CBIZ uses Western World Insurance
Company for typical risks. It places coverage with Lloyd’s of London when extraordinary risks are included in the property
rental agreement such as the inclusion of horseback riding. Mr. Laucher asked about earthquake coverage for single-family
units. Mr. Wolfe stated that earthquake coverage is an available coverage option. Ms. Pallozzi asked for justification behind
the claim contained in the meeting materials provided by HomeAway that the insurance product offered through CBIZ is
comparable in cost to a standard homeowners policy. Mr. Wolfe stated that the intent of the statement is to explain that the
policy covers exposures included in a standard homeowners policy, it is written on an annual basis and it replaces the need
for a homeowners policy. He also stated that claims are handled by the underwriting companies that write the policy.
Mr. Hurst stated that HomeAway recommends to its hosts that they procure coverage, but HomeAway is not involved in the
process of obtaining said coverage nor does HomeAway require proof of coverage by its hosts.
3.
Heard Report from Florida Regarding Sharing Legislation
Mr. Starnes stated that Florida Senate Bill 1298 was established in the 2015 legislative session regarding the regulation of
home-sharing, as well as transportation network companies. SB 1298 passed in the Florida Senate but not in the Florida
House of Representatives. It contains several important definitions regarding home-sharing, including “short-term rental
network companies” (RNCs), “short-term rental period” and “short-term rental property.” SB 1298 states that, during the
short-term rental period, the RNC must maintain insurance on the property in excess of any primary applicable policies;
however, it would provide drop down coverage and become primary where no other insurance applies. The RNC must also
disclose in writing the coverages and limits available through the RNC and that its standard homeowners policy may deny
coverage due to rental of the property. The minimum limits stated in SB 1298 are $1 million per occurrence for direct
physical loss, as well as a $2 million per location or aggregate limit. Liability coverage must be provided with a minimum
$1 million limit for bodily injury and property damage. SB 1298 specifies that personal insurance policies are not required to
provide coverage for short-term rental properties and that personal lines insurers may exclude coverage, including the duty to
indemnify and defend the insured, unless otherwise stated in the policy. SB 1298 also states that the RNC must cooperate in
all claims investigations and identify the periods for which the property was rented through its website. There were concerns
with the drafting of the bill due to a lack of described recourse if the RNC did not maintain adequate coverage. Ms. Starnes
stated that SB 1298 does not include any protections for homeowners to safeguard against the cancellation of their
homeowners policy.
Commissioner Jones asked if any other states have introduced legislation regarding home-sharing. No one on the call was
aware of additional states with pending legislation regarding home-sharing. Mr. Wolfe stated that home-sharing issues are
primarily regulated at the municipal level, not the state level. He stated that common practice is for cities to require a permit
for property rental, and proof of insurance is a requirement to obtain the permit.
Mr. Barclay and Ms. Bach asked why SB 1298 was introduced to include home-sharing. Donovan Brown (Colodny Fass)
stated that a senator from the Orlando area who is a former chair of the Florida Senate’s Committee on Banking and
Insurance backed SB 1298 in an effort to fully address the sharing economy in Florida. Hotels became involved through the
Florida Restaurant and Lodging Association, as well as the Disney properties. The language in SB 1298 contemplates an
ordinance passed in San Francisco to address home-sharing.
Having no further business, the Sharing Economy (C) Working Group adjourned.
W:\National Meetings\2015\Summer\Cmte\C\SharingWG\7-22 SharingWGmin.docx
3
4
Attachment B
Hear Presentations Regarding the
Industry Stance on Home Sharing
5
Attachment B
Home Sharing / Short Term Rental
NAIC Sharing Economy Working Group
August 15, 2015
Chicago IL
1
Home Sharing vs. Auto Sharing
Insurance Issues
• Neither is a new concept
•
•
•
– Renting rooms or vacation homes
Very different treatment in standard policy language
– Standard homeowners language covers on a limited basis
– “Occasional rental”
Have not heard same concerns from insurers, why?
– Less threat of court imposed coverage
– More comfort with the concept
Home sharing companies learning from TNC issue?
– More proactive on educating hosts
– Offering “guarantees” and insurance programs
2
6
Attachment B
Legislative / Regulatory Activity
• Relatively little so far..
•
– CA : Taxes
– FL : Part of TNC bill, similar format
PCI Recommendation
– Many exposures addressed in current policy language
– Consumer & host awareness is critical, support clear disclosure
of insurance/ guarantees provided by sharing program
– Urge regulators to promote awareness, support innovation as
new products developed.
3
Questions?
Robert Passmore
[email protected]
847-553-3612
Christopher Hackett
[email protected]
847-553-3812
4
7
Attachment C
Discuss Existing Documentation on
Insurance Requirements/Notices
Regarding Home Sharing
8
Consumer Alert:
Attachment C
NAVIGATING HOME-SHARING RENTALS
With the rise of online community marketplaces, more people are turning to renting out rooms or their
entire homes to guests for extra income. However, insurance coverage questions arise when an insurer
expects a person to be using the home in one way, but later finds out the conditions have changed. To
ensure you are protected, read these tips from the National Association of Insurance Commissioners.
What are home sharing websites?
Technology has changed the way people interact. There are now online solutions available that let people rent a room or
their home to a stranger they meet by using an app or a website, called home-sharing solutions. Home-sharing or peer-topeer rentals (P2P) are sites like Airbnb, Roomorama and HomeAway that connect hosts with guests. Guests find a property
and pay for the stay like a hotel. The difference is that the property is not a licensed hotel or bed and breakfast and is often
a privately-owned apartment, condo or house. Anyone can register as a host or guest.
What's the risk?
What if your guest vandalizes your property, the hallway of your condo or even your neighbor's swing set?
What if your guest gets injured on your property?
Both guests and hosts could incur costs if things go astray. As a host, your homeowners or renter's insurance policies are
not designed to cover accidents arising from property rental and your insurance company may deny coverage for any
resulting claims.
While operating as an online platform, these types of rentals may fall outside of local zoning or housing laws and regulations,
which could result in violating local law or code. Even if you have not violated any law, you might have to hire legal counsel
to protect and defend yourself.
How can you protect yourself as a host?
Accidents can happen, anytime, anywhere. Even if you take preventative measures, someone could trip over a rug or fall
over their feet, causing injury.
Most homeowners policies provide coverage if a home visitor falls and is injured. However, that is likely not the case if a
paying guest falls in your home, because coverage may not be intended for commercial use. And without liability insurance
protection from the company facilitating the host agreement, your homeowners or renter's insurance policy might leave you
with no coverage.
Homeowners policies vary, but usually exclude or provide very limited coverage for homeowners who are running a business
in their home. Once you begin earning income from renting out your home or a room, you are probably considered a homebased business. If you lease out a room or your entire home for profit, your insurer could claim you're essentially running a
hotel or bed and breakfast and deny coverage. However, if you seldom rent out your home, your insurer might provide
coverage. A renter's insurance policy is subject to the same limitations as a homeowners insurance policy.
To make sure you are protected, talk to your agent about your situation and participation in this activity. If you only
occasionally rent a room or your house, your current homeowners insurer might be willing to provide an endorsement to
protect you. However, if you plan to rent your house for a long term or if you plan to frequently rent out a room or the whole
house, then purchasing a landlord policy (also known as landlord property insurance or rental coverage for landlords) might
be your best option. A landlord insurance policy will cover your home, structures on the property, property contents that you
own (such as appliances and furniture), lost rental income due to building damage, legal fees and liability protection.
Some experts recommend only renting to guests who have homeowners, renter's or personal liability insurance and are able
to show proof they are insured. Then if your property is damaged, you could file a claim under the guest's policy.
How can you protect yourself as a guest?
9
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Consumer Alert:
Attachment
C happen
Your own homeowners, renter's or personal liability insurance policy will generally protect you even as
a guest if you
to cause damage to a host's property. But understand that per Airbnb's user agreement, the company reserves the right to
make a claim under your homeowners or renter's policy for any damage or loss you cause to an accommodation. Other P2P
companies may have similar agreements so make sure to check their terms of use.
What else do I need to know?
Currently, Airbnb provides host protection insurance with coverage up to $1 million if a third-party claims bodily injury or
property damage against you as a host. This liability insurance program is automatically applied to every listing in the U.S.
and the coverage is secondary. It only applies after your primary insurance policy either settles or denies a claim. Laws
regarding P2P companies vary from state to state, even city to city so it's important to speak with someone who is
knowledgeable about your location. Since home-sharing companies are still a fairly new phenomenon, talk with your agent or
insurance provider about your risks as a host to make sure you are properly covered before you list your property for rent.
More Information
Knowledge is power and the more you can educate yourself about insurance issues related to rentals in the share economy,
the better. Contact your state insurance department to find out how it is handling matters involving companies that facilitate
property rentals to guests. For more information about insurance tips in the share economy, visit Insure U online including
the Sharing Economy page.
About the NAIC
The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory
support organization created and governed by the chief insurance regulators from the 50 states, the
District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish
standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff
supports these efforts and represents the collective views of state regulators domestically and
internationally. NAIC members, together with the central resources of the NAIC, form the national system
of state-based insurance regulation in the U.S. For consumer information, visit insureUonline.org.
You are currently subscribed to the "NAIC News Release" electronic service.
For information regarding this service, please contact:
The NAIC Communications Division, 1100 Walnut Street, Suite 1500, Kansas City, MO 64106, 816.783.8003.
To unsubscribe from the "NAIC News Release" electronic service,
send a blank e-mail to the News Release service.
Or, click here to unsubscribe from the NAIC website.
To unsubscribe from all NAIC Electronic Services, send a blank e-mail to NAIC Opt Out services.
©2015 National Association of Insurance Commissioners. All rights reserved.
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Do Your Homework Before Using Home-Share Rental Services | State of Delaware News | News from Delaware State Government Agencies
Attachment C

MENU
 Article
Do Your Homework Before Using Home-Share
Rental Services
Date Posted: Thursday, April 30th, 2015
Categories: Insurance Commissioner News
Do Your Homework Before Using Home-Share Rental Services
Dover, DE–Delawareans are increasingly planning their summer vacations through online rental
services like Airbnb. The peer-to-peer rental marketplace has grown substantially in recent years
as travelers seek alternatives to traditional rental market options, and owners rent out their homes,
or sometimes just a room within their home, looking to earn some extra income.
“For years, state residents and vacationers from the USA and around the world have enjoyed
spending part of their summer at homes in Delaware’s beautiful resort towns,” says Delaware
Insurance Commissioner Karen Weldin Stewart. “However, it’s important to make sure you have
the proper insurance coverage before you list your home for rent. And if you cause any damage
as a traveler renting someone else’s house, you should be aware of the effect that may have on
your existing homeowners policy.” Consequently, Commissioner Stewart wants Delaware
consumers to be aware of the following information provided by the National Association of
Insurance Commissioners:
Thanks to the internet, property owners can now rent a room, or their whole home, directly to a
stranger who found their listing through an app or a website. Home-sharing, or peer-to-peer
rentals (P2P), are sites like Airbnb, Roomorama and HomeAway that connect hosts with guests.
Guests find a property and pay for the stay like a hotel. The difference is that the property is not a
licensed hotel or bed and breakfast and is often a privately-owned apartment, condo or house.
Anyone can register as a host or guest.
11
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What’s the risk?
Attachment C
What if your guest vandalizes your property, the hallway of your condo or even your neighbor’s
swing set? What if your guest gets injured on your property? Both guests and hosts could incur
costs if things go astray. As a host, your homeowners or renter’s insurance policies are not
designed to cover accidents arising from property rental and your insurance company may deny
coverage for any resulting claims.
While operating as an online platform, these types of rentals may fall outside of local zoning or
housing laws and regulations, which could result in violating local law or code. Even if you have
not violated any law, you might have to hire legal counsel to protect and defend yourself.
Most homeowners policies provide coverage if a home visitor falls and is injured. However, that is
likely not the case if a paying guest falls in your home, because coverage may not be intended for
commercial use. And without liability insurance protection from the company facilitating the host
agreement, your homeowners or renter’s insurance policy might leave you with no coverage.
Homeowners policies vary, but usually exclude or provide very limited coverage for homeowners
who are running a business in their home. Once you begin earning income from renting out your
home or a room, you are probably considered a home-based business. If you lease out a room or
your entire home for profit, your insurer could claim you’re essentially running a hotel or bed and
breakfast and deny coverage. However, if you seldom rent out your home, your insurer might
provide coverage. A renter’s insurance policy is subject to the same limitations as a homeowners
insurance policy.
To make sure you are protected, talk to your agent about your situation and participation in this
activity. If you only occasionally rent a room or your house, your current homeowners insurer
might be willing to provide an endorsement to protect you. However, if you plan to rent your house
for a long term or if you plan to frequently rent out a room or the whole house, then purchasing a
landlord policy (also known as landlord property insurance or rental coverage for landlords) might
be your best option. A landlord insurance policy will cover your home, structures on the property,
property contents that you own (such as appliances and furniture), lost rental income due to
building damage, legal fees and liability protection.
Some experts recommend only renting to guests who have homeowners, renter’s or personal
liability insurance and are able to show proof they are insured. Then if your property is damaged,
you could file a claim under the guest’s policy.
How can you protect yourself as a guest? Your own homeowners, renter’s or personal liability insurance policy will generally protect you
even as a guest if you happen to cause damage to a host’s property. But understand that per
Airbnb’s user agreement, the company reserves the right to make a claim under your
homeowners or renter’s policy for any damage or loss you cause to an accommodation. Other
P2P companies may have similar agreements so make sure to check their terms of use.
12
Attachment
C
Currently, Airbnb provides host protection insurance with coverage up to $1 million
if a third-party
claims bodily injury or property damage against you as a host. This liability insurance program is
automatically applied to every listing in the U.S. and the coverage is secondary. It only applies
after your primary insurance policy either settles or denies a claim. Laws regarding P2P
companies vary from state to state, even city to city so it’s important to speak with someone who is
knowledgeable about your location. Since home-sharing companies are still a fairly new
phenomenon, talk with your agent or insurance provider about your risks as a host to make sure
you are properly covered before you list your property for rent.
###
Delaware Department of Insurance: “Protecting Delawareans through regulation
and education while providing oversight of the insurance industry to best serve the public.”
www.delawareinsurance.gov | 302.674.7300
Visit the Insurance Commissioner's Website
airbnb • beach house rental • homeowner's insurance • insurance • Insurance
Commissioner • Karen Weldin Stewart • P2P rentals • peer to peer home rentals • renters
insurance • vacation rentals
Related Topics:
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13
5-6-15 Home Sharing Rentals
Attachment C
FOR IMMEDIATE RELEASE
May 6, 2015
Department of Insurance Offers Tips on Navigating Risks of
Home-Sharing Rentals
With the rise of online community marketplaces and the popularity of the new sharing economy, more people are turning to renting out
rooms or their entire homes to guests for extra income. However, major questions can arise when a home is used for a purpose that’s
not included in its insurance coverage.
“Most homeowners policies provide coverage if a visitor falls and is injured. However, that is likely not the case if a paying guest falls in
your home, because your typical homeowners’ coverage is not intended for commercial use,” said Insurance Commissioner Jim Donelon.
“Speak to your agent or insurance provider about your risks as a host to make sure you are properly protected before you list your
property for rent.”
The Louisiana Department of Insurance offers the following FAQs for those considering renting out their property or staying in a homesharing rental.
What is home sharing?
Home-sharing is when a person rents a room or their home to a person often by using an app or a website. Guests select property and
pay for the stay like a hotel. The difference is that the property is not a licensed hotel or bed and breakfast, and is often a privatelyowned apartment, condo or house. Anyone can register as a host or guest.
What are the risks to home owners?
Both guests and hosts could incur costs if a guest vandalizes the property or gets injured. As a host, your homeowners, condo or renter's
insurance policies are not designed to cover accidents arising from property rental and your insurance company may deny coverage for
any resulting claims.
These types of rentals may fall outside of local zoning or housing laws and regulations, which could result in violating local laws or
codes. Even if you have not violated any law, you might have to hire legal counsel to protect and defend yourself. Some cities, like New
Orleans, have laws in place prohibiting unlicensed rentals under 30 days, and this could also affect whether your insurance company
denies your claim.
How can I protect myself as a host?
Homeowners policies vary, but usually exclude or provide very limited coverage for homeowners who rent out a room or their home. If
you lease out a room or your entire home for profit, your insurer could claim you're essentially running a hotel or bed and breakfast and
deny coverage. A renter's or condo insurance policy is subject to the same limitations as a homeowners’ insurance policy.
Without liability insurance protection from the company facilitating the host agreement, your homeowners, condo or renter's insurance
policy might leave you with no coverage. Some companies provide host protection insurance with coverage up to $1 million if a third
party claims bodily injury or property damage against you as a host. This liability insurance coverage is secondary and only applies after
your primary insurance policy either settles or denies a claim.
If you only occasionally rent a room or your house, your current homeowners’ insurer might be willing to provide an endorsement to
14
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5-6-15 Home Sharing Rentals
Attachment
C
protect you. However, if you plan to frequently rent out a room or the whole house, then you may want to consider
purchasing
a landlord
policy (also known as landlord property insurance or rental coverage for landlords). A landlord insurance policy may be an option to
cover your home, structures on the property, property contents that you own (such as appliances and furniture), lost rental income due
to building damage, legal fees and liability protection. Your agent can provide guidance on the best type of coverage for your needs.
How can I protect myself as a guest?
Your own homeowners, renter's or personal liability insurance policy will generally protect you if you happen to cause damage to a host's
property. But understand that under some website agreements, the company that facilitates the host agreement reserves the right to
make a claim against your homeowners or renter's policy for any damage or loss you cause to an accommodation.
About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s
insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of
insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply
with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.
15
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State of Oregon: News - Consumer Advisory: Think about insurance before participating in sharing economy
Attachment C
Department of Consumer and Business Services / Oregon Insurance Division / News / Consumer Advisory: Think about
insurance before participating in sharing economy
Consumer Advisory: Think about insurance before participating in sharing
economy
 Oregon.gov
Department of Consumer & Business Services
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The Department of Consumer and Business Services, Insurance Division advises Oregonians to consider their insurance
needs when engaging in new apps and websites that facilitate car rides, vacation rentals, and other services – known as
the “sharing economy.”
“When a new industry emerges, it often creates unique insurance situations,” said Insurance Commissioner Laura Cali.
“Consumers should be aware that traditional insurance policies may not apply when participating in a new kind of
business.”
Examples include transportation networking companies (TNCs), such as Uber, Lyft, and Sidecar, that offer smartphone
apps to help connect drivers and passengers as an alternative to taxis. Drivers who participate use their personal vehicles
to transport passengers for a fee. Other companies, such as Airbnb, allow people to list and book properties for rent
through its website.
Here is what you need to consider before participating in these new endeavors:
Drivers of TNCs
Personal insurance policies will not provide you with coverage if you drive for a TNC. Because you would be collecting a
fee for driving another person, your personal insurance policy would not cover any damage or losses that occur. Before
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http://www.oregon.gov/DCBS/insurance/news/Pages/2014/sept192014.aspx[8/6/2015 9:16:44 AM]
State of Oregon: News - Consumer Advisory: Think about insurance before participating in sharing economy
Attachment C
signing up to become a driver:
Find out if the company has an insurance program. Make sure the commercial automobile insurance policy held by
the TNC includes coverage for bodily injury and property damage to you and others before and during the time you
are designated to drive passengers for payment.
Review any agreement involving car-sharing or ridesharing. Seek legal counsel if needed.
Call your insurance company or agent to discuss your options and whether you might want to consider a commercial
insurance policy.
Passengers of TNCs
Neither your personal auto policy nor the personal auto policy of the driver will protect you when you are riding in another
vehicle for a fee. Before using a ride-sharing service:
Ask the transportation company if it has coverage that will pay for your expenses in the event of an injury.
Call your insurance company or agent to discuss your options.
Homeowners listing their home for rent
Some insurance companies may provide coverage if you occasionally rent out a room, but making all or part of your home
available for regular rental likely would be considered business use. Homeowner policies generally do not provide
coverage for business use. If you are considering renting out your home through a service such as Airbnb:
Check with your agent or insurance company if you're considering making all or part of your home available for
rental on a regular basis. Your agent or customer service representative can explain how your current policy does or
does not apply and any options available to you. Find out whether you can add to your coverage, or whether you have to buy a policy specifically designed for a
landlord. Consumers renting a room or home
If you rent through a mobile app or website and there is damage to your belongings during your stay, your own
homeowner or renter policy would apply similar to when you rent a hotel room.
If you have questions, the Insurance Division can help. You can reach the division’s Consumer Advocacy Unit by calling 1888-877-4894 (toll-free), emailing [email protected] , or visiting www.insurance.oregon.gov.
The Insurance Division is part of the Department of Consumer and Business Services, Oregon's largest business
regulatory and consumer protection agency. Visit http://www.dcbs.oregon.gov. For more information: Lisa Morawski, [email protected]
, 503-947-7873
Press questions
503-947-7897
[email protected]
503-947-7868
[email protected]
Links
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http://www.oregon.gov/DCBS/insurance/news/Pages/2014/sept192014.aspx[8/6/2015 9:16:44 AM]
Be aware before you share | Department of Financial Regulation
Attachment C
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Department of Financial Regulation
VERMONT.GOV
HOME
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Home | Be aware before you share
Be aware before you share
DFR urges consumers to check insurance policies before sharing rides,
rooms.
The new “sharing economy” is changing the landscape of small
CAPTIVES
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business in the U.S. and Vermont. Appeal a Health Insurance
Opportunities to rent everything from rides to rooms, golf clubs to
Get Insurance Consumer
cameras, are popping up everywhere and while you may be tempted to
take advantage of these money-making innovations, make sure you
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know what your insurance policy covers.
Check License of
Individual
Insurance Company or
Transportation networking companies (TNCs) such as Uber, Lyft and
Sidecar and house sharing arrangements like Airbnb are household
terms, but entrepreneurs are also lending vehicles, office space,
parking spots, boats, bicycles, cameras and more. Although a smaller
segment of the “sharing economy,” personal items like power tools,
clothing, household items camping equipment, furniture, and even pets
are being “shared” with complete strangers. The “share-conomics” business models use technology – typically a
website and/or smartphone application – to connect consumers with
individuals interested in providing lodging, transportation or goods and
services.
While joining this "collaborative consumption" revolution may sound
like an easy way to make extra money from renting your home, car or
other personal possessions, it is important to fully understand the
insurance implications and liability considerations of such transactions
for all participants.
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http://www.dfr.vermont.gov/insurance/insurance-consumer/be-aware-you-share[8/6/2015 9:17:58 AM]
The Vermont Department of Financial Regulation has issued some tips
Attachment C
that may help keep Vermonters from making expensive and harmful
mistakes.
Ride Sharing
If you are considering ride sharing, whether you are a passenger or the
driver, there are several things you should think about before you go.
Protect Yourself as a Driver
When it comes to insurance, TNC’s generally do not operate like
traditional licensed taxi or limousine services where drivers are required
to have a certain level of insurance. TNC drivers should be aware of a
possible gap in insurance coverage between their own personal
automobile insurance policy and the TNC’s insurance policy (if one
exists). The major TNCs have policies covering their drivers, but these
may not offer the full spectrum of protection that drivers or passengers
may assume or expect.
Many standard personal auto insurance policies list exclusions if you
use your personal vehicle to transport passengers for a fee. Some
policies may even go further and list exclusions in the event that a
driver is available for hire. Other policies may be silent concerning
coverage during the period when the driver has engaged the app and is
looking for passengers, but has not picked up a passenger. Drivers
should not assume the lack of a specific exclusion means they have
coverage.
Protect Yourself as a Passenger
Passengers should be aware that the insurance gaps that may exist for
ridesharing drivers can also have an impact on a passenger’s ability to
be reimbursed for injury claims resulting from an incident during a
shared ride.
House Sharing
House sharing has become quite popular and provides
accommodations that are generally less expensive than hotels. It offers
added income for those who rent out all or part of their home and is an
affordable means of travel for people who are looking to save money.
One of the most well-known house-sharing enterprises is Airbnb.
Airbnb allows people to rent out and/or host lodging in private homes.
In some cases, whole houses are available while others choose to rent
only a bedroom in their home. According to Airbnb’s website, there are
more than 1,000 listings in Vermont and 800,000 listings in more than
19
190 countries worldwide. While the company has announced that it will
Attachment C
begin offering liability coverage for U.S. hosts, the coverage is
“secondary,” which means that Airbnb will require any claims to be
processed through the host’s insurance policy first. Anyone interested
in hosting a house sharing arrangement like Airbnb should understand
their homeowner’s or renter’s insurance policy and what coverage, if
any, would be provided if a guest has a claim against them such as
theft, property damage or injury.
Be Informed
Commissioner Susan L. Donegan said as this trend of the “sharing
economy” becomes more popular, DFR expects to see the insurance
market adapt quickly to clarify and deal with the insurance gaps. “Read
and understand your policies to make sure insurance coverage is
adequate and if you have any concerns that there may be inadequate
insurance coverage for these types of sharing arrangements, talk to
your insurance agent or insurance company,” she said. Donegan urged
Vermonters to remember that the bottom line is as a driver, passenger,
homeowner or person looking for a place to stay while traveling, be
aware of possible insurance consequences.
“Be aware before you share” tips:
For insurance purposes, once you begin earning income from
renting out personal property, you may be considered a home-
based business. Make sure you understand all relevant legal and
regulatory requirements.
Before sharing a vehicle or residence, make sure auto and
homeowners' insurance policies provide the protection you need.
When lending goods and services, be sure to set a security
deposit that is sufficient to cover losses. Take photos and other
information about your property in a home inventory. Be mindful
that for some items, you may not be able to locate an exact
replacement.
Contact your insurance agent or your insurance company if you
have any questions.
20
Department of Business Regulation
Insurance Division
1511 Pontiac Avenue, Bldg. 69-2
Cranston, Rhode Island 02920
Consumer Alert 2015-8
NAVIGATING HOME-SHARING RENTALS
With the rise of online community marketplaces, more people are turning to renting out
rooms or their entire homes to guests for extra income. However, insurance coverage
questions arise when an insurer expects a person to be using the home in one way, but
later finds out the conditions have changed. To ensure you are protected, the Rhode
Island Insurance Division and the National Association of Insurance Commissioners
(NAIC) offer these helpful tips to consider:
What are home sharing websites?
Technology has changed the way people interact. There are now online solutions
available that let people rent a room or their home to a stranger they meet by using an app
or a website, called home-sharing solutions. Home-sharing or peer-to-peer rentals (P2P)
are sites like Airbnb, Roomorama and HomeAway that connect hosts with guests. Guests
find a property and pay for the stay like a hotel. The difference is that the property is not
a licensed hotel or bed and breakfast and is often a privately-owned apartment, condo or
house. Anyone can register as a host or guest.
What's the risk?
What if your guest vandalizes your property, the hallway of your condo or even your
neighbor's swing set?
What if your guest gets injured on your property?
Both guests and hosts could incur costs if things go astray. As a host, your homeowners
or renter's insurance policies are not designed to cover accidents arising from property
rental and your insurance company may deny coverage for any resulting claims.
While operating as an online platform, these types of rentals may fall outside of local
zoning or housing laws and regulations, which could result in violating local law or code.
Even if you have not violated any law, you might have to hire legal counsel to protect and
defend yourself.
Page 1 of 3
21
Accidents can happen, anytime, anywhere. Even if you take preventative measures,
someone could trip over a rug or fall over their feet, causing injury.
Most homeowners policies provide coverage if a home visitor falls and is injured.
However, that is likely not the case if a paying guest falls in your home, because
coverage may not be intended for commercial use. And without liability insurance
protection from the company facilitating the host agreement, your homeowners or renter's
insurance policy might leave you with no coverage.
Homeowners policies vary, but usually exclude or provide very limited coverage for
homeowners who are running a business in their home. Once you begin earning income
from renting out your home or a room, you are probably considered a home-based
business. If you lease out a room or your entire home for profit, your insurer could claim
you're essentially running a hotel or bed and breakfast and deny coverage. However, if
you seldom rent out your home, your insurer might provide coverage. A renter's
insurance policy is subject to the same limitations as a homeowners insurance policy.
To make sure you are protected, talk to your agent about your situation and participation
in this activity. If you only occasionally rent a room or your house, your current
homeowners insurer might be willing to provide an endorsement to protect you.
However, if you plan to rent your house for a long term or if you plan to frequently rent
out a room or the whole house, then purchasing a landlord policy (also known as landlord
property insurance or rental coverage for landlords) might be your best option. A landlord
insurance policy will cover your home, structures on the property, property contents that
you own (such as appliances and furniture), lost rental income due to building damage,
legal fees and liability protection.
Some experts recommend only renting to guests who have homeowners, renter's or
personal liability insurance and are able to show proof they are insured. Then if your
property is damaged, you could file a claim under the guest's policy.
How can you protect yourself as a guest?
Your own homeowners, renter's or personal liability insurance policy will generally
protect you even as a guest if you happen to cause damage to a host's property. But
understand that per Airbnb's user agreement, the company reserves the right to make a
claim under your homeowners or renter's policy for any damage or loss you cause to an
accommodation. Other P2P companies may have similar agreements so make sure to
check their terms of use.
Currently, Airbnb provides host protection insurance with coverage up to $1 million if a
third-party claims bodily injury or property damage against you as a host. This liability
Page 2 of 3
22
insurance program is automatically applied to every listing in the U.S. and the coverage is
secondary. It only applies after your primary insurance policy either settles or denies a
claim. Laws regarding P2P companies vary from state to state, even city to city so it's
important to speak with someone who is knowledgeable about your location. Since
home-sharing companies are still a fairly new phenomenon, talk with your agent or
insurance provider about your risks as a host to make sure you are properly covered
before you list your property for rent.
More Information
Knowledge is power and the more you can educate yourself about insurance issues
related to rentals in the sharing economy, the better. For more information about
insurance tips, visit Insure U online including the Sharing Economy page.
Don’t be a victim of insurance fraud! Before you sign a contract, write a check or give
out personal information, STOP. CALL the Rhode Island Insurance Division at 401-4629520 or email [email protected] and CONFIRM that the agent, adjuster,
appraiser, and/or company you are working with are licensed to do business in RI.
About the RI Insurance Division
The mission of the Rhode Island Insurance Division is to assist, educate and protect
Rhode Islanders through the implementation and enforcement of state laws mandating
regulation and licensing of the regulated industries while recognizing the need to foster a
sound business environment in the state. We are also committed to treating everyone who
comes before us fairly, efficiently and with respect. Please visit our website to obtain
additional consumer information and alerts issued by the Rhode Island Insurance
Division, or you may contact us at 401-462-9520 or email [email protected] for
assistance. You may also file a complaint online with the RI Insurance Division by
clicking here.
About the NAIC
The National Association of Insurance Commissioners (NAIC) is the U.S. standardsetting and regulatory support organization created and governed by the chief insurance
regulators from the 50 states, the District of Columbia and five U.S. territories. Through
the NAIC, state insurance regulators establish standards and best practices, conduct peer
review, and coordinate their regulatory oversight. NAIC staff supports these efforts and
represents the collective views of state regulators domestically and internationally. NAIC
members, together with the central resources of the NAIC, form the national system of
state-based insurance regulation in the U.S. For consumer information, visit
insureUonline.org
Joseph Torti III
Superintendent of Insurance
July 14, 2015
Page 3 of 3
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Materials - National Association of Insurance Commissioners

Transcription

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