In Colorado, the way we use our homes is evolving. Whether you’re renting out your entire house on Airbnb while you travel or hosting short-term guests in your basement suite, homesharing has become a popular way to earn extra income. But before you list your property, it’s essential to understand how this trend impacts your personal lines insurance—and what coverage you may need to protect your investment.
The Risk Gap
Many standard homeowners and renters insurance policies may not provide full protection when homesharing is involved. These policies are typically designed for personal use, not for commercial activity like short-term rentals. That means if a guest damages your property or gets injured while staying in your home, your insurer could potentially deny your claim.
Homesharing Scenarios That Could Affect Coverage:
- A guest slips and falls in your kitchen.
Liability coverage on a standard policy may not apply if you’re earning income from the stay. - A fire breaks out while guests are using the stovetop.
Damage caused during paid stays might not be covered. - Theft or vandalism by a guest.
Many policies exclude theft by someone lawfully in your home—even if they overstay or cause damage.
These situations are especially relevant for homeowners in popular Colorado cities like Denver, Boulder, and Fort Collins, where short-term rentals are common and local regulations may apply.
What You Can Do:
✅ Talk to Your Insurance Agent
Start with a conversation. A trusted advisor can help you assess your current policy and identify any coverage gaps. They may recommend a homesharing endorsement or a commercial policy, depending on the frequency of rentals and how the space is used.
✅ Consider Homesharing-Specific Coverage
Some insurance carriers may offer coverage options designed for short-term rental situations. These often include property damage, liability, loss of income, and even protection for guest-caused damage.
✅ Understand Platform Protections (and Their Limits)
Platforms like Airbnb and Vrbo offer limited host protection programs—but these are not comprehensive insurance policies and often include significant exclusions.
✅ Keep a Paper Trail
Maintain records of guest stays, communications, and any agreements. These can be helpful if a dispute or claim arises.
Protect Your Colorado Home and Your Side Hustle
Homesharing can be a smart way to generate income, but it also adds complexity to your home insurance. If you’re homesharing in Colorado, make sure your personal lines insurance aligns with state-specific guidelines and local risks. Don’t leave your biggest asset exposed—reach out to our team to explore coverage that fits your situation.
📞 Contact us today to schedule a Colorado-based insurance review tailored to your home, your goals, and your guests.
