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by Michael Harbron on May 17, 2021

Renting out homes – or a room in a home – to people is on the rise all over the country. For some, the decision to share their home serves as a means to add monthly income to their bank accounts. For others, it’s a way to tap into the world of alternative short-term residency and corporate lodging. More homeowners in Scottsdale, Phoenix, and other cities nationwide are offering their homes to visitors than in the past several decades.

How does this affect home insurance in Scottsdale – or anywhere, for that matter? Do homeowner policies cover home sharing?

If a renter causes damage to your property, will your insurance carrier pay on a claim for it? Most policies will not allow their customers to rent out any part of their homes for any length of time, even on a short-term basis. Keep in mind that policies are designed to protect the interests of the people who reside in the home full time. It also protects their belongings and the property itself. This is all on the basis that it is used as the covered residents’ main place of dwelling.

In addition, carriers base the premiums they charge on the risks they face; while it’s true that policies do cover a variety of circumstances, they normally don’t allow for any or all situations to be covered. That being said, there are different policies for home insurance in Phoenix that can fit the needs of homeowners who rent out all or part of their home.

Risks associated with short term rentals include more than what the average homeowner’s policy covers. Some companies offer specific additional endorsements that can be “added” to main policies to cover these short term rentals. However, not every company does. If you’re interested in renting out all or part of your home, it would be best to pursue these additional types of property insurance, riders, and endorsements to make sure that various types of living arrangements will be covered.  

Insurance in Phoenix for Home Sharing and Renting 

Most casualty companies offer dwelling fire products, which is offered with the understanding that the home in question is being used for purposes other than as a primary residence of the homeowner. There are different categories for occupancy that the owner can choose from, most commonly weekly, monthly, and annually. This ensures that should a claim arise while a renter was residing in the home that losses would be covered by Phoenix homeowners insurance.


There are also policies available for those in Arizona who rent their resort condos or vacation homes out on a frequent basis. If you want to turn your home into an investment generator, be sure that you talk to your insurance carrier about your options to make sure you’re covered in the event of any damage that happens while a renter resides on your property. 

Need help or a free online quote for Phoenix home insurance? Contact us and we can help, or fill out our free no-obligation quote form today.


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