The Home-Sharing Basics

Posted: 6 years, 11 months ago

^{Updated December 2025}

What You Should Know Before Home-Sharing

With the rise of the gig economy, home-sharing platforms like Airbnb and Vrbo have become popular ways to earn extra income from your property. While the idea of turning your home—or even a spare room—into a revenue stream is appealing, there are important considerations homeowners need to understand before listing their property. At Top O’ Michigan, we want you to enjoy the benefits of home-sharing without unexpected risks. Here’s what to know in 2025 to protect your home, your finances, and your peace of mind.

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1. Understand the Insurance Implications

Most standard homeowners' insurance policies do not automatically cover losses related to home-sharing. This can leave you exposed to:

• Property damage caused by guests

• Theft of personal items

• Liability claims if someone is injured on your property

Tip:

Before listing your home, review your homeowners insurance policy and speak with your insurance agent. You may need a home-sharing endorsement or a separate short-term rental policy to ensure you are fully protected.

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2. Protect Against Liability

When renting your home to guests, liability risk increases significantly. Accidents happen, and if a guest is injured, you could be held financially responsible.

Consider coverage options that include:

• Liability insurance for bodily injury or property damage

• Umbrella insurance for added protection above standard policy limits

• Short-term rental endorsements that specifically cover home-sharing risks

Proper liability coverage is critical to protecting your home, assets, and family.

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3. Be Aware of Local Laws and Regulations

Many cities and municipalities have specific regulations around short-term rentals. These may include:

• Licensing or registration requirements

• Limitations on the number of nights per year

• Safety regulations, like smoke detectors and carbon monoxide alarms

• Tax obligations on rental income

Failing to comply with local rules can lead to fines, penalties, or even suspension of your home-sharing privileges.

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4. Screen Guests and Secure Your Property

Home-sharing can be lucrative—but also risky if your property isn’t protected. Steps to reduce risk include:

• Screening guests through the platform’s review system

• Limiting access to sensitive areas (lock bedrooms, personal offices, or storage spaces)

• Removing or securing valuables

• Installing security devices such as smart locks, cameras (where allowed), or motion sensors

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5. Prepare for the Unexpected

Even with precautions, incidents can happen. Preparing ahead can make all the difference:

• Maintain documentation of your home’s condition with photos or videos

• Keep an emergency repair fund for unexpected damages

• Understand the claims process and who to contact immediately if a loss occurs

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6. We Can Help You Navigate Home-Sharing Risks

Home-sharing can be a profitable venture, but it comes with risks that standard homeowners insurance may not cover. At Top O’ Michigan, we specialize in helping homeowners:

• Review and adjust policies to include home-sharing coverage

• Understand liability and property protection options

• Navigate claims quickly if something goes wrong

Don’t leave your home or finances exposed. Contact us today via Service@TheSpireTeam.com to ensure your property—and your peace of mind—are fully protected. 

 

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