NORTHBROOK, Ill., May 25, 2016 /PRNewswire/ -- In a move to better protect customers who rent out their homes on a temporary basis, Allstate has filed plans to offer home-sharing protection in six states - Arizona, Colorado, Illinois, Michigan, Tennessee and Utah - starting in mid-August. Allstate becomes the first major insurer to offer personal property protection targeted to the needs of home-sharing hosts.
Home-sharing companies represent an evolving economy, which creates new protection needs for homeowners considering renting out their homes on a temporary basis. With participation in the home-sharing economy expected to quadruple over the next few years, Allstate is preparing to help customers be better protected when they choose to be home-sharing hosts.
"This new level of protection is a continuation of Allstate's innovative spirit when it comes to personalizing the customer experience and being a leader in our industry," says Allstate Senior Vice President of Product Management Julie Parsons. "We're excited to be first-to-market with this unique coverage option that can help our customers be a part of the home-sharing economy."
Pending regulatory approval, here's how Allstate's HostAdvantageSM endorsement will work:
- It helps fill some of the personal property protection gaps that may exist in a typical homeowners policy for customers who occasionally rent out their homes to temporary renters. The endorsement will help protect homeowners from unexpected out-of-pocket expenses. For example, if a home-sharing renter destroys some furniture or steals electronics.
- The homeowners deductible still applies, but hosts are covered for their personal property up to $10,000 per rental period, subject to the policy terms, conditions, limitations and exclusions.
- HostAdvantage protection can be added to an Allstate homeowners policy for around $50 per year in the initial six states.
While some home-sharing companies like Airbnb or HomeAway may have coverage options for their hosts, Allstate's HostAdvantage targets the specific needs of its customers who participate in home-sharing and provides a trusted brand that enhances a customer's current homeowner policy. Allstate anticipates making this protection available in additional states in 2017.
"Generally speaking, home insurance is pretty broad with respect to coverage for the house itself, so many losses that might occur in an occasional rental situation could be covered," says Parsons. "But, personal property coverage doesn't necessarily work the same way. So, if your tenants decide to throw a party and damage your stuff, you'll want to know what might be covered in advance."
Allstate offers a few tips to keep in mind for anyone who chooses to occasionally rent out their home to temporary tenants:
- Consider making an "owner's closet" in your home where you can lock up any valuables or home goods you don't want your tenants to have access to while they're in your home.
- Make sure you have an updated record of your personal belongings in the home. Allstate has a free tool called Digital Locker that allows you to take an inventory of the contents in your home and store it electronically so you have a record if anything happens. Any consumer can use Digital Locker, not just Allstate customers.
- Take the opportunity to have a coverage review session with an Allstate agency owner before renting out your home.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, protecting approximately 16 million households from life's uncertainties through auto, home, life and other insurance offered through its Allstate, Esurance, Encompass and Answer Financial brand names. Now celebrating its 85th anniversary as an insurer, Allstate is widely known through the slogan "You're In Good Hands With Allstate®." The Allstate brand's network of small businesses offers auto, home, life and retirement products and services to customers in the United States and Canada. In 2015, The Allstate Foundation, Allstate, its employees and agency owners gave $36 million to support local communities. Allstate employees and agency owners donated 230,000 hours of service across the country.
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SOURCE Allstate Insurance Company