1. Forms
2. HO
3. HO-06-68

What the form is

The HO 06 68 Broadened Home-Sharing Host Activities Coverage Endorsement is an Insurance Services Office (ISO) form designed to be attached to the HO 00 08 Modified Coverage Form. Its primary purpose is to provide specific coverages for insureds who engage in home-sharing activities, such as short-term rentals of their residence through platforms like Airbnb, HomeAway, or VRBO. Standard homeowners policies often contain exclusions or limitations for business activities, and frequent home-sharing can be considered a business pursuit. This endorsement modifies the base policy to buy back or broaden coverage for certain property and liability exposures related to these home-sharing host activities. It clarifies that the ISO policy is primary over any coverage potentially offered through a home-sharing network platform agreement, and it classifies such agreements as guarantees or protection plans rather than insurance.

Classes of business it applies to

This endorsement is specifically designed for homeowners insured under an HO 00 08 policy who make their residence available for rent to others, typically on a short-term basis, through a home-sharing network platform. This includes individuals who:

• Rent out their entire home occasionally.
• Rent out a room in their home while they are still present.
• Utilize third-party platforms to facilitate these rentals.

Real-world example: An individual owns a home and is insured under an HO 00 08 policy. They decide to rent out their entire home for a week through Airbnb while they are on vacation. The HO 06 68 endorsement would provide broadened coverage for certain risks associated with this rental activity that might otherwise be excluded by their standard policy.

Special considerations

• Necessity due to exclusions: Homeowners policies typically exclude or limit coverage for "business" activities. Renting out a home frequently or for profit can trigger these exclusions. The HO 06 68 is designed to address this gap for those using the HO 00 08 form.
• Interaction with home-sharing platform's protection: While some home-sharing platforms offer their own form of protection or insurance to hosts, this endorsement clarifies that the homeowner's policy, as modified by this endorsement, will be primary.
• Scheduled limits: The endorsement may include a schedule to specify limits for certain coverages, such as "Home-sharing Host Activities Damage to Property of Others."
• Evolution of coverage: ISO introduced forms to address home-sharing exposures due to the rise of the sharing economy. While the ISO 2022 Homeowners Program incorporated some home-sharing considerations into base forms, optional endorsements like the HO 06 68 remain available to provide more comprehensive coverage.

Real-world example: If a guest renting through a home-sharing platform accidentally causes a fire, and the platform offers some form of host protection, the HO 06 68 endorsement would typically mean the homeowner's policy responds first to covered damages, up to its limits, before any protection from the platform might apply.

Key information for agents and underwriters

• Risk assessment: Underwriters need to assess the frequency and nature of the home-sharing activity. Regular, extensive rental activity presents a different risk profile than occasional rentals.
• Coverage tailoring: This is an optional endorsement. Agents should discuss the insured's home-sharing activities to determine if this endorsement is necessary to avoid coverage gaps.
• Policy primacy: It's important to explain to the insured that this endorsement makes their homeowners policy primary over other potential coverages offered by home-sharing platforms.
• Distinction from other forms: This endorsement is specifically for use with the HO 00 08 policy. Similar endorsements exist for other homeowners forms (e.g., HO 06 63 for HO 00 03, HO 06 65 for HO 00 05).
• Understanding definitions: The endorsement includes specific definitions for terms like "home-sharing host activities," "home-sharing network platform," and "home-sharing occupant."
• Property and Liability: The endorsement typically broadens coverage for certain property losses (e.g., to other structures or landlord's furnishings used for home-sharing) and can also address liability exposures.