Making money by driving for Uber or renting out all or part of your home through Airbnb sounds like a great idea. However, personal auto and home insurance policies don’t cover these situations...leaving you with a serious coverage gap should an accident occur.
While Uber and other ride-sharing companies may offer insurance, these policies may still leave coverage gaps depending on what stage you’re in of offering rides. As a passenger, you might want to consider these gaps, too.
Renting out a portion of your home on Airbnb or another home-sharing service means you are essentially running a bed & breakfast. If a renter damages or destroys your home, your home insurance will not apply.
Generally, commercial insurance policies are needed for such coverage, which most likely is cost prohibitive for the average person looking to make a few extra dollars. While the insurance industry is evolving to address the risks created in this new “sharing economy”, you need to be aware of these gaps. Putting extra cash in your pocket is great, but be sure the benefits outweigh the risks.
If you have questions, be sure to speak with your insurance agent.