PCI Urges California Governor to Sign Insurance Bill on the Sharing Economy

July 1, 2016

The Property Casualty Association is urging California’s governor to sign a bill approved by the Legislature to ensure homeowners and renters offering rooms for rent on hosting platforms like Airbnb and Home Away understand what insurance coverage they have.

Senate Bill 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.” Armand Feliciano, ACIC vice president, said in a statement. “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 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.

SB 1092 moved through the legislative process unopposed.

The bill now goes to Gov. Jerry Brown’s desk.

ACIC is part of the Property Casualty Insurers Association of America.

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