(Image source: Erie Insurance homepage.)
Erie Insurance (Erie, Pa.) has announced new coverage for homeowners policyholders participating in the sharing economy. The insurer’s customers can now purchase additional protection that would apply if something were to happen to a renter or their belongings while renting all or part of the home, an Erie statement reports.
“For many people, their home is their most valuable asset. Our job is to help them protect it,” comments Bob Buckel, VP and product manager, Erie Insurance. “We’re constantly evolving our products to meet our customers’ changing needs, and our new home sharing coverage is just the latest example of that.”
Bob Buckel, VP, Product Manager, Erie Insurance.
Erie notes that, according to market and consumer data provider Statista, an estimated 7.7 million U.S. adults participated in the lodging sharing economy in 2014 and that number is forecast to rise to 19.3 million by 2020.
Buckel observes that while some peer-to-peer home sharing sites offer liability coverage for hosts and landlords, other sites may require homeowners to provide their own coverage. Examples of losses covered cited by Erie include a renter who is injured by slipping on a wet floor or falling down a flight of stairs, or a burst pipe that causes water damage to a renter’s personal property, such as expensive electronic equipment or camera.
Erie says the new coverage would be provided up to the liability limit for certain coverages on the homeowners policy, which typically ranges from $100,000 to $1 million. The insurer estimates the average cost to add the home sharing coverage at $40 to $60 per year.
Erie Insurance reports that it now offers home sharing insurance in Illinois, Indiana, Kentucky, Maryland, New York, Ohio, Pennsylvania, Tennessee, West Virginia, Wisconsin and Washington, D.C.