1. Forms
2. HO
3. HO-06-66

What the Form Is

The HO 06 66 Broadened Home-Sharing Host Activities Coverage Endorsement is an Insurance Services Office (ISO) form designed to modify the HO 00 06 Unit-Owners Form. Its primary purpose is to provide enhanced insurance protection for condominium unit owners who participate in home-sharing – that is, renting out their unit (or a portion of it) on a short-term basis, typically through online platforms such as Airbnb, VRBO, or HomeAway. Standard homeowners policies often contain exclusions or limitations for "business" activities or for the rental of property, which can leave home-sharing hosts with significant coverage gaps. This endorsement specifically addresses these gaps by broadening certain property and liability coverages related to "home-sharing host activities."

Classes of Business It Applies To

This endorsement is specifically for individuals who have an HO 00 06 Unit-Owners insurance policy and engage in home-sharing activities. It's not for commercial lodging businesses like hotels or bed & breakfasts, but rather for residential unit owners who occasionally or regularly rent out their personal residence to guests.

• Real-world example: Sarah owns a condominium unit in a ski resort town and has an HO 00 06 policy. She frequently rents out her condo to tourists for weekend stays using a popular home-sharing website. To ensure she has appropriate coverage for potential damages caused by renters or liability claims arising from a guest's stay, her insurance agent recommends adding the HO 06 66 endorsement to her policy.

Special Considerations

There are several important aspects to consider regarding the HO 06 66 endorsement:

• Defined Terms: The endorsement introduces specific definitions crucial for its application, such as "Home-sharing host activities," "Home-sharing network platform," and "Home-sharing occupant."
• Coverage Enhancements: It modifies various parts of the base HO 00 06 policy. For instance:
  • It can revise Coverage D – Loss of Use to include "Lost Rental Value of Home-sharing Host Activities," covering lost rental income if a covered peril makes the rented portion of the unit uninhabitable. This may also extend to cancellations due to events like a National Weather Service hurricane notice, if stipulated in the rental agreement.
  • Landlord's Furnishings coverage may be expanded to apply to furnishings used in connection with home-sharing.
  • It modifies the Other Insurance condition, typically making the ISO policy primary over any insurance or protection plan offered by the home-sharing platform.
  • It often replaces the standard Damage to Property of Others coverage with a specific "Home-Sharing Host Activities Damage to Property of Others" coverage, which may have a separate, scheduled limit.
• Scheduled Limits: The endorsement allows for a specific limit of liability to be scheduled for "Home-Sharing Host Activities Damage to Property of Others." If no limit is scheduled, a default amount (e.g., $1,000) may apply.
• Not All-Encompassing: While it broadens coverage, it doesn't convert the homeowners policy into a full commercial business policy. There might still be limitations, and the underlying HO 00 06 policy terms and conditions will apply unless specifically modified by the endorsement.
• State-Specific Adoption: The availability and exact wording of this endorsement can vary by state, as not all states may adopt ISO forms, or they may have state-specific modifications.
• Evolution of Coverage: ISO introduced these home-sharing endorsements in 2017 due to the growing sharing economy. While the 2022 ISO Homeowners Program incorporated some home-sharing language into the base forms, optional endorsements like the HO 06 66 remain available for policyholders seeking more comprehensive coverage for these activities.

Key Information for Agents and Underwriters

• Identify the Exposure: Agents should proactively ask clients with HO 00 06 policies if they engage in any form of home-sharing to determine if this endorsement is needed.
• Risk Assessment: Underwriters need to evaluate the frequency and intensity of the home-sharing. Renting a room occasionally is a different risk than renting the entire unit out most weekends. This will influence eligibility and potentially pricing.
• Explain Coverage Gaps: Agents must clearly communicate the potential coverage gaps in a standard HO 00 06 policy if the insured undertakes home-sharing without this or a similar endorsement. Emphasize that relying solely on insurance from the home-sharing platform can be insufficient or provide secondary coverage.
• Discuss Limits: Advise clients on selecting an adequate limit for the "Home-Sharing Host Activities Damage to Property of Others" coverage based on their potential exposure.
• Underwriting Guidelines: Insurers will have specific underwriting criteria for this endorsement. Factors may include the type of unit, security measures, rental history, and location.
• Interaction with Platform Protections: It's crucial for agents to discuss how this endorsement interacts with any guarantees or insurance provided by the home-sharing platform itself, particularly concerning the policy's primacy.
• Loss of Rental Income: The provision for lost rental income is a significant benefit but also an exposure that underwriters must assess, especially the conditions under which it applies (e.g., hurricane-related cancellations).