SACRAMENTO, CA — The California Legislature has just approved a bill that will make sure homeowners and renters offering rooms for rent on hosting platforms, like Airbnb and Home Away, understand what insurance coverage they have. SB 1092, authored by Senator Bill Monning (D-Carmel), requires hosting platforms to provide a notice to homeowners and renters reminding them to check their insurance policy for appropriate insurance coverage prior to offering their property for rent on the platform.
“The sharing economy has opened up new opportunities for both travelers and hosts. As homeowners and renters use their property in new ways, it is vital that everyone involved understands what insurance coverage they have.” says Armand Feliciano, ACIC vice president. “SB 1092 provides a necessary notification to ensure that everyone involved in the sharing economy rental process is aware and clear on their insurance coverage.”
SB 1092 builds on existing law, SB 761 (Hall), enacted in 2015 that requires hosting platforms to provide a notice to renters that they should check their lease to see if such activities are permitted or may be in violation of the lease.
“We thank Senator Monning for authoring this important measure that will give rental hosts the peace of mind to know their property and belongings are protected should the unexpected happen,” said Feliciano. “A home is one of the most valuable assets that ought to be protected and everyone should understand what coverage they have prior to participating on such platforms.”
SB 1092 has not received a single “NO” vote as it has moved through the legislative process. The Assembly voted to approve the bill 77 to 0 and the Senate voted 38 to 0. The bill will now go to Gov. Jerry Brown’s (D) desk for signature or veto.