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CA Department of Insurance

Insurance Commissioners Adopt Study of Home Sharing and Insurance Issues

News: 2016 Press Release

For Release: December 13, 2016
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Insurance Commissioners Adopt Study of Home Sharing and Insurance Issues
Regulators develop guidance for home-sharing
MIAMI BEACH, Fla. — The National Association of Insurance Commissioners (NAIC) today adopted a white paper on insurance coverage issues in the sharing economy for home rentals. Home-sharing companies like Airbnb and HomeAway offer consumers the ability to rent out a personal residence or home. Short-term home rentals by home-sharing companies present new insurance challenges.

The new white paper, Insurance Implications of Home-Sharing: Regulator Insights and Consumer Awareness, outlines insurance considerations regarding home-sharing rentals.

"We know more and more people use home-sharing companies to find vacation housing as well as rent out their homes," said California Insurance Commissioner Dave Jones. "As insurance regulators, we examined the insurance implications of this emerging trend. This white paper outlines the insurance issues and risks regulators need to understand to help consumers navigate this fluid marketplace." Jones chairs the NAIC Sharing Economy Working Group that developed the paper.

The paper discusses various coverage options for homeowners, unit-owners, dwelling and renters policies. Limitations for each type of coverage are discussed as well as legal restrictions. The paper also focuses on the need for consumer outreach and education regarding these new services.

"It's critical that we urge all parties in the transaction to understand the risks involved and the laws governing home-sharing rentals," added Jones. "Where there are insurance coverage gaps, regulators, legislators, consumers, home-sharing companies and insurers need to work together to close those gaps and better protect consumers."

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The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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