What is Airbnb Host Insurance?
Homeowners Insurance exists to protect policyholders and their property. Traditional home insurance protects homeowners from named perils, including theft and damage from natural disasters or extreme weather. When operating a business from your home, which includes renting out to Airbnb guests, policies become more convoluted. That being said, it’s important that you as a host have adequate coverage, including liability, bodily injury, and property damage protections, which are not generally included on standard policies. If you’re renting out your home relying on the simple protections of your standard policy, you could be putting yourself and at risk of liability and financial hardship as you’ll likely be uninsured.
Airbnb offers Host Protection Insurance, which provides hosts protections up to $1 million for liability and property damage. There are, however, major gaps in the coverage provided by Airbnb, and should not be considered complete insurance. Host Protections do not cover loss of income, or repairs to damages in certain situations, such as water damage or mold. This supplementary protection can be paired with a Host’s standard homeowners policy to provide extra protection to their property.
Supplemental Home-Share Coverage
In addition to a standard home insurance policy and company-provided protections, homeowners can add an Airbnb Endorsement to their regular policy. An endorsement will add further protections for hosts, including but not limited to liability and theft. If managing Airbnb rentals is your main source of income, hosts may want to consider a separate Landlord Insurance Policy. This would be the ultimate source of protection for hosts, offering dwelling, structure, property, lost income, and liability claims.
Know Your Risks
Renting out your extra room or entire property to strangers can be a fantastic way to earn extra income, but naturally, comes with a fair share of risks. Even with the protection from security deposits, hosts can be left with major losses from vandalized, burglarized, or other accidental property damage properties. Plus, if you don’t carry correct liability protections if a guest is injured while on your property, you could be held legally responsible for their medical payments and other associated costs. Similar to the traditional landlord/tenant model, the owner of a property is responsible for covering the cost of major repairs and improvements, which is why proper contracts and house rules should be drafted prior to an Airbnb stay.