OhioRental platforms would insure guarantees for renter-caused damage
Online rental platforms offering covered damage guarantees would have to insure them, and users could claim directly against the insurer if a provider fails to perform within 180 days.
What it does
Providers that owe users under covered rental guarantees would have to insure those promises. The guarantees cover damage renters are responsible for under the platform's terms.
Providers would have to post guarantee terms online and explain that insurance backs their promise. If the provider fails to perform within 180 days after proof of loss is filed, a user could claim directly against the insurer, subject to the policy.
A guarantee sale or issuance would count as a consumer transaction, with the provider treated as the seller and the contract holder as the consumer.
Argument forIf a provider fails to pay a covered claim, a property owner may be able to seek payment from the insurer after 180 days.
Argument againstPlatforms may face added costs to insure these guarantees, which could affect what they charge property owners or renters.
More detail
A provider that owes a user under a guarantee would have to insure all of its covered guarantees with an insurer allowed to do business in Ohio. The guarantees cover damage for which a renter is responsible under the rental platform's terms. Covered providers include the platform and its affiliates or representatives that issue, offer, or administer guarantees. The insurance must cover every guarantee for which the provider owes obligations to a contract holder.
Providers would have to post guarantee terms online and include statements explaining that the guarantee is not insurance and that an insurance policy backs the provider's promise. These requirements apply to rental home marketplace guarantees offered in Ohio by covered providers. A user may claim directly against the insurer if the provider fails to perform within 180 days after proof of loss is filed. The claim is subject to the policy's terms. The 180-day period starts when proof of loss is filed and sets how long the provider has to perform before a user may claim directly against the insurer.
A guarantee sale or issuance would count as a consumer transaction, with the provider treated as the seller and the contract holder as the consumer. This applies to the sale or issuance of a rental home marketplace guarantee.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Referred to committeeLatest
- Jun 11IntroducedMinor
- Jun 10
- Vote recorded Passed. Result: pass.Lower
- Vote recorded Reported. Result: pass.Lower
- Jun 9PassedPassed House
- Jun 9Reported - Amended
- Mar 18Referred to committeeMinor
- Mar 11IntroducedIntroduced
Consumer Protection