Home sharing and your homeowners policy

Framing the Situation
Part of the benefit of being a homeowner is being able to entertain friends, family and other guests, but what happens when something goes wrong and a guest causes damage? While in a perfect world the guest would apologize and offer to cover the damage, the reality of the situation can be much more complicated.

When a Guest Causes Damage

When damage to your property occurs, you may wonder, “Does my homeowners policy cover damage caused by my guests?” In general, the answer is yes. However, the real question you should be asking yourself is “Do I want to use my homeowners policy to cover damage caused by my guests?”

The answer to this question can be much more complicated. Your guests are responsible for the costs involved with fixing any damage they cause. By using your homeowners policy to cover the damage, you may end up costing yourself in the long run in the form of increased rates and premiums.

What is covered under homeowners insurance can vary from policy to policy. You should review your policy for any situations excluded from coverage. Things to watch out for:

  • Your policy may only cover the house or structure, meaning things like walls and floors
  • Coverage may apply only to accidental damage

Never wonder if you have the appropriate coverage for a certain situation, always consult your policy to make sure you and your family have the protection you need. When questions arise, contact Lawley for answers.