As a licensed insurance agent, I cringe sometimes when I hear about what homeowners are doing with their homes. We live in such a litigious world these days that liability exposure is everywhere. And when there is exposure, you always want to be protected. An App recently came out that allows a homeowner to rent out their driveway. Obviously this app could become popular in the Austin area due to ACL, SXSW and other events going on throughout the year. You're probably thinking what does this have to do with Business Insurance? What is the big deal if I use an app like this?
Driveways fall under "Other Structures" on most homeowners insurance policies. Once you "rent" your driveway, there will most likely be exclusions to your policy. If something happens on your premises, and someone is seriously injured, you as a homeowner, could potentially be brought into the lawsuit, if it goes that far. If coverage is excluded, you could be on your own to defend. Why? Because in the eyes of an insurance company, you are basically turning your home into a business, something that might have greater, or different exposures, than if it were used as a home. I highly recommend you contact your insurance agent if you plan on using an app to rent out your driveway, home or other structure. Make sure to ask them if it impacts your policy in any way.
As always, feel free to contact me if you have questions or need help with anything. My personal take..... Would I use the app if I needed a parking spot for a couple hours, maybe. Would I use the app if I were a homeowner, absolutely not.
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