1. Forms
2. HO
3. HO-06-64

What the Form Is

The HO 06 64 Broadened Home-Sharing Host Activities Coverage endorsement is an addition to the Homeowners HO 00 04 Contents Broad Form (tenant's policy). Its primary purpose is to provide coverage for certain property and liability exposures that arise when an insured engages in home-sharing host activities, such as renting out their apartment or a room through platforms like Airbnb or Vrbo. Standard homeowners and tenant policies often exclude or significantly limit coverage for business-related activities, and home-sharing is typically considered a business pursuit. This endorsement modifies the base policy to address these specific risks.

Classes of Business It Applies To

This endorsement applies specifically to tenants who have an HO 00 04 policy and engage in home-sharing activities. This includes individuals who:

• Rent out their entire rented apartment or a portion of it (e.g., a spare room) on a short-term basis.
• Utilize home-sharing network platforms to facilitate these rentals.
• Wish to have insurance protection for potential property damage or liability claims related to these home-sharing activities.

Real-world example: A tenant who rents an apartment and occasionally lists a spare bedroom on a home-sharing site for weekend travelers would need this endorsement to ensure coverage for incidents related to those short-term rentals, as their standard HO-4 policy would likely exclude such activities.

Special Considerations

It's crucial to understand that the base HO 00 04 policy, like most standard homeowners forms, generally excludes or limits coverage for "business" activities, and home-sharing often falls under this definition. The HO 06 64 endorsement is designed to buy back some of this excluded coverage.

• The endorsement may include specific definitions for terms like "home-sharing host activities," "home-sharing network platform," and "home-sharing occupant."
• Coverage provided by this endorsement might be primary over any insurance or protection plan offered by the home-sharing platform itself.
• The endorsement may contain a schedule to specify certain limits of liability, for example, for "Home-Sharing Host Activities Damage to Property of Others."
• With the introduction of newer forms like the HO 00 14 (Homeowners Contents Comprehensive Form), which may already incorporate broader home-sharing coverage, the necessity of this endorsement might be reduced for insureds who have the HO 00 14.
• Some states may have specific regulations or variations of this endorsement.

Real-world example: If a guest of a home-sharing host accidentally damages the host's personal property, or if a guest is injured on the premises during a home-sharing rental, this endorsement would provide coverage that might otherwise be denied under an unendorsed HO-4 policy.

Key Information for Agents and Underwriters

For Agents:

• It is essential to proactively ask clients with HO-4 policies if they engage in any home-sharing activities. Many insureds may not realize their standard policy provides little to no coverage for such activities.
• Clearly explain the coverage gaps and how the HO 06 64 endorsement can address them.
• If a client is considering the newer HO 00 14 form, compare the built-in home-sharing coverage with what is offered by the HO 06 64 endorsement on an HO 00 04 to determine the best fit.

For Underwriters:

• The addition of this endorsement signifies an increased risk exposure due to the transient nature of home-sharing occupants and the commercial aspect of the activity.
• Underwriting considerations should include the frequency and scale of the home-sharing activities, the type of property being rented, and any loss history associated with the insured's home-sharing.
• The endorsement includes a "Home-sharing Host Activities Verification Requirements" condition, allowing insurers to inquire about the frequency of such activities to adequately underwrite and rate the exposure.
• Pricing for this endorsement should reflect the broadened coverage and increased risk.