Do you need insurance if you home swap?
The short answer is no, you do not need to get special insurance when home swapping. Insurance is typically needed for home rentals, whether the rental is short or long term. However, home swapping offers an alternative to rentals where money does not exchange hands. Since you aren’t being paid for your home being used, you don’t need to insure it.
Some home exchange companies do have blanket insurance policies for their business. Typically these companies have a broad market and low levels of customer vetting. Incidents have occurred on their platforms, customers brought suit on the company, and so the home exchange companies decide that they need protection under a commercial policy.
Other home exchange companies offer different types of insurance for guests to add to their trip. Meaning, these are paid options for customers to tack onto their total price of swapping. There are typically two options here:
Companies may offer travel insurance. The home exchange company typically partners with a third-party insurer and acts as a reseller of standard travelers insurance.
Companies may offer special coverage in case damage occurs during the swap. The special coverage for damage typically goes into a pool of funds that is managed by the home exchange company. If an incident occurs, the company draws from the funds to pay out the harmed party.
48 dots is a little different than most home exchange companies. We guarantee a good quality trip. That means, if damages occur, we will pay for them up to $5000. If a cancellation occurs, we will put the traveling party up in a hotel up to $2000.