Does Your Homeowners Insurance Cover Airbnb? Renting out your home can be profitable, but your homeowners insurance policy may not cover home sharing. Before allowing someone to share your home, you need to shield your belongings against damages and shield yourself from filing personal liability claims using the right insurance coverage. A homeowner considering sharing or renting their home temporarily through the Airbnb website needs to confirm if their homeowners insurance policy offers the right coverage.
Temporary rentals most time require additional coverage or a whole new type of insurance coverage. Most times your insurance policy may not offer coverage for Airbnb. However, it is important to check with your insurer or check your policy to see if you have enough coverage for Airbnb. Aside from this, it is important to gain enough knowledge on whether or not homeowners insurance covers Airbnb.
Does Your Homeowners Insurance Cover Airbnb?
Homeowners insurance is designed to offer financial protection to homeowners for different events like fire, wind, and lightning. If you rent your home on Airbnb frequently, your homeowner’s insurance company will consider it to be a business, and it will not be covered. In cases where you only occasionally rent out your home, your homeowners insurance policy may offer coverage for Airbnb losses, such as if the guest damages your TV or if a storm blows off a part of your roof while you rent it out.
However, this generally depends on your home insurance company and whether or not they allow coverage for you to rent out your home. This is because you are considered to own a business more than a place to live. Generally, homeowners insurance is designed to shield a homeowner from unexpected expenses and not to shield businesses.
In cases where you don’t frequently rent out your home, your home insurance policy can be extended to cover Airbnb. Your insurance company may consider your home as your residence instead of a business and will offer insurance coverage. However, this also depends on your home insurance company. You may be required to purchase additional coverage like a home-sharing endorsement or as a standalone policy.
Homeowners Insurance for Airbnbs
Airbnb insurance, also called short-term rental insurance, on its own is not enough to cover your home. To cover coverage gaps, some insurance companies offer special insurance for Airbnb. Depending on what insurer you buy from, Airbnb may be available as additional coverage on your home insurance or as a standalone policy. The insurance companies that offer coverage for Airbnb include
- Proper insurance.
- USAA.
- CBIZ.
- Allstate.
- Eerie.
- Liability Mutual.
Another insurance coverage homeowners can get for Airbnb is a landlord insurance policy. However, this will also depend on the insurance company you purchase this policy from.
Should I Inform Homeowners Insurance About Airbnb?
It is important to inform your home insurance company if you intend to rent out your home through Airbnb. This is the best way to be open with your insurance company. Failure to inform your home insurance companies comes with penalties and consequences that may lead to bigger issues in the future.
What Type of Insurance Do I Need for Airbnb?
For Airbnb, you will need a host liability insurance policy. This policy covers the financial costs if the renter gets hurt or if there is a fire or theft occurrence. Most homeowners insurance policies do not offer coverage for temporary rentals; because of this, you will need to get insurance coverage through Airbnb as a standalone or as an additional coverage on your policy.
Does Renters Insurance Cover Airbnb?
Generally, renters insurance policies do not offer coverage for your properties at an Airbnb. If, however, you get displaced because of a covered event, your additional living expenses, including transportation, food, and hotel costs, may be covered by your renters insurance policy.
Airbnb Risks
Allowing strangers into your home can pose different risks. If your renter damages your belongings or sustains bodily injuries while staying in your home, you may be exposed to risks if you do not have adequate insurance coverage. The following are some common risks of Airbnb:
- Vandalism.
- Property damage.
- Theft.
- Personal liability.
Homeowners may be held responsible for the actions of tenants renting their home. If your tenant is injured, the homeowner would be held responsible depending on the event. This is an important reason why it is not a good idea to engage in Airbnb and also why you need the right insurance coverage.
