The Total Coverage Blog
With Airbnbs becoming some of the most unique getaways in today’s world, it’s no wonder they are growing in popularity. But if you are considering turning your property into a place for guests to find respite, you should also be thinking about extra insurance for your Airbnb.
Notifying your insurance agent or provider before renting your home to any kind of guest is the first thing you should do, even if it’s just once. By renting your home or seasonal property and relying on your homeowners policy, you may be jeopardizing your own coverage.
More frequent rentals are viewed as business or rental activity in the insurance industry and may go beyond anything your homeowners policy will cover. And while Airbnb does offer some protection for their hosts, you will likely want to cover the gaps.
If it all sounds a bit confusing, fear not, we’re here to help!
Your homeowners insurance policy was written to protect your home from damage caused by things like fire and wind. Additional risks, such as renters, were not taken into consideration when the policy was written.
Homeowner’s insurance will sometimes cover temporary, short-term, one-time rentals (often with an additional endorsement). However, more frequent rentals (like actively listing your place on Airbnb) may be viewed as business or rental activity within the insurance industry.
When business or rental activity is present, a business insurance policy may be necessary, depending on your carrier.
But doesn’t Airbnb cover their hosts with insurance?
Some is the keyword here. Airbnb protects their hosts with two types of insurance and all hosts are automatically covered when they list on Airbnb (except those who offer accommodations through Airbnb Travel, LLC). Their coverage includes:
These programs are both nice offerings, but they fall short in some areas. For instance, Host Protection does not cover intentional (non-accidental) damage or injury.
So, should you purchase extra insurance for your Airbnb?
In order to properly cover both yourself (as a host) and your home, you should be looking into extra insurance for your Airbnb. With the appropriate policy in place, you are protecting yourself in areas where Airbnb’s policies fall short.
Appropriate policies may include extra coverage for theft, vandalism, and loss of income, as well as higher liability limits. Just remember, every situation is unique and each insurance carrier has their own way of handling rental scenarios. The beauty of working closely with your insurance agent or company is that they can help you customize the policy to fit your unique situation.
We recommend contacting your local agent to discuss insurance before you list on Airbnb. A phone call can go a long way when it comes to protecting yourself and your home.
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