The Most Flexible Home-sharing and Short-term Rental Insurance

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Coverage Overview

Comet will provide hosts who are part of Comet's Member Network with home-sharing insurance on liability and loss of earnings for their short-term rental activities. Hays of California is the broker and can be contacted at comethome@hayscompanies.com

The policy is written by United Specialty in the name of Comet, as the association, on behalf of all covered Hosts. United Specialty is financially secure, as evidenced by its "A" rating from A.M. Best Company, an insurance rating company.

The cost of the insurance is billed on a monthly basis and must be initiated at least 5 days before the start of the month of coverage.

The policy will be written on an industry standard "occurrence" coverage form. "Occurrence" policies cover accidents that happen during the coverage period, regardless of when the claim is made. Once a Host is enrolled, coverage can be activated or deactivated on a month-to-month basis. Hosts are only covered for scheduled premises and only for occurrences that happen while coverage is in-force.

Although the home-sharing insurance will be primary, this does not replace a Host’s homeowners policy. In fact, the policy will provide excess coverage for the types of exposures not typically covered by a homeowners policy.

Coverage

The policy will provide two types of insurance: Commercial General Liability and Loss of Earnings. The insurance will cover all rental activities at covered (scheduled) premises regardless of the rental source (i.e. P2P platform, newspaper, referral, etc.).

General Commercial Liability Overview: This coverage will pay a sum when a Host becomes legally obligated to pay because of lawsuits alleging bodily injury or property damage. The limit is $1,000,000 per occurrence, subject to an aggregate limit of $2,000,000 per Host per policy year. The aggregate limit is the most the policy will pay during an annual period, commencing on December 1. The typical homeowners policy excludes "business activities" altogether or, if covered, only insures "incidental" activities.

Loss of Earnings Overview: This coverage will pay for loss of earnings resulting from the necessary suspension of a Host’s rental operations. The damage must be caused by a guest or their invitee and must exceed $10,000. The limit is the lesser of $5,000 or the last ninety-days (90) of rental revenue. The typical homeowners policy provides no loss of earnings protection.


Exclusions

The policy is subject to all industry customary exclusions along with the following additional exclusions:

1. Rental Periods of one year or more. The insurance does not apply to any loss resulting from rental periods of one year or more.

2. Americans with Disability Act Violations. The insurance does not apply to bodily injury resulting from a violation of the Americans with Disabilities Act or any similar state, local or common law.

3. Fire or Life Safety Violations. The insurance does not apply to bodily injury resulting from any applicable federal, state, local, or common law regulating fire or life safety.

 

4. Bed Bugs. The insurance does not apply to any bodily injury or property damage resulting from bed bugs.

5. Assault and Battery. The insurance does not apply to any bodily injury or property damage resulting from any assault or battery.

6. Defamation of Character. The insurance does not apply to bodily injury resulting from defamation of character.

Frequently Asked Questions

WHY DO I NEED HOMESHARING LIABILITY INSURANCE?

If a homeshare guest sustains a bodily injury or property damage while in your home, they can sue you for damages. Home insurance policies protect homeowners against liability when they have guests in their home, but this coverage usually doesn’t include short-term rental guests such as homeshare guests, as this is considered commercial activity and is excluded from most personal home insurance policies. This leaves you exposed every time a guest stays in your home.

If you live in San Francisco, liability insurance is required in order to register on the Short-Term Residential Rental Registry.

DOESN’T THE HOMESHARING SITE I USE COVER ME?

Not necessarily and even when they do, often the coverage is not clear. Airbnb is the only company that includes liability insurance for hosts, but their coverage only applies to homesharing done through their site. Homesharing Liability Insurance is the only way to get coverage that follows you, no matter how you short-term rent your home.

HOW MUCH COVERAGE DO I GET?

Homesharing Liability Insurance provides up to $1 million in Commercial General Liability insurance, for bodily injury or property damage to the guest. It also reimburses you for 90 days lost rental income, up to $5,000, as a result of damage to your home caused by your guest that exceeds $10,000.

WHO NEEDS THIS POLICY?

Everyone who home-shares or short-term rents needs liability insurance. If you use multiple sites to homeshare (e.g. Airbnb, HomeAway, VRBO) you need Homeshare Liability Insurance as Airbnb coverage does not follow you on other sites and only covers you from check-in to check-out. For example, if check-out is at 4pm and your guest request an extra hour, that extra hour may not be covered. If you don’t homeshare all year round you can choose the months you need coverage for, so you’re not over-insured.

HOW DOES HOMESHARING LIABILITY INSURANCE WORK WITH MY HOMEOWNERS INSURANCE?

Home-sharing Liability Insurance is compatible with any home owner's insurance and is primary, but excess over other types of insurance. What this means is Home-sharing Liability Insurance will take effect and provide you coverage while you are engaged in commercial activity by renting or home-sharing if your home insurance policy won’t cover your liability claim.

WILL I HAVE EVIDENCE OF COVERAGE FOR HOMESHARING LIABILITY INSURANCE?

Yes, you will be able to download evidence of coverage directly from your Comet Profile once your coverage is live within 48 hours of adding coverage for the month.

I AM A RENTER WHO HOME-SHARES. IF I PURCHASE HOMESHARING LIABILITY INSURANCE COVERAGE, IS THE HOMEOWNER ALSO COVERED?

Yes, the Homesharing Liability Insurance will also cover the homeowner, but only for claims resulting from your negligence. Please review the policy on the page titled "Owners as additional insureds" for more details.

HOW MUCH IS IT?

You can sign up to join Comet and see your monthly price. You are not required to pay for every month of the year, or even for consecutive months - only for the months you rent.

Once you register, your coverage will begin the next day at 12:01 AM Eastern Standard Time. You will be charged the full month cost for coverage for the remainder of the current month; unfortunately we are not able to pro rata your charge for the remainder of the month. Each month you will be charged on the 25th of the month for your next month’s coverage.

If you would prefer to begin coverage on the 1st day of the following month, to avoid a full month’s charge for the remainder of the current month, you can do so automatically on your Comet Profile or by emailing us at support@comethome.com. We will reach out to our broker (Hays Companies) and our carrier for you to adjust your initial charge and your policy start date. If you have additional questions, you can also reach out to Hays Companies directly at comethome@hayscompanies.com.

If at any time you would like to opt out of coverage for any upcoming months, just sign into your profile and turn coverage off. An automated notification will be sent to Hays Companies and our support staff.

WHEN WILL MY HOMESHARING LIABILITY INSURANCE COVERAGE BEGIN?

Once you register, your coverage will begin the next day at 12:01 AM Eastern Standard Time, unless you email support@comethome.com or comethome@hayscompanies.com or update the coverage months on your profile.

HOW DO I SELECT THE MONTHS I WANT COVERED THROUGHOUT THE YEAR?

To make changes to scheduled monthly coverage, simply sign into your Comet Profile and you can make all adjustments easily. You will receive email confirmation of the change from Hays Companies and Comet Support shortly after sending your request email.

WHO IS THE INSURANCE COMPANY AND BROKER?

Homesharing Liability Insurance is underwritten by United Specialty Insurance Company, an A-rated insurance company. The broker is Hays Companies.

WILL YOU CONTACT MY HOMEOWNERS INSURANCE COMPANY IF I MAKE A CLAIM?

No. Your home-owners insurer will never be contacted by us. In the event of a claim, you will report the claim to your home-owners insurer, and then file the claim to Comet.

WILL MY CLAIM BE DENIED IF I AM VIOLATING THE TERMS OF MY LEASE?

No. Home Sharing Liability policy does not exclude claims because a host subleases the premises in violation of the terms of his or her lease.

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