An Airbnb® Insurance Policy Covers What Your Personal Policies Are Not Designed to Cover

Your property is likely covered under a home insurance policy, and your vehicle under an auto policy. Both are personal insurance policies that exclude “business activity” and would likely have no coverage for an Airbnb rental. An insurance policy for Airbnb would entirely replace your current home insurance policy.  It would essentially cover what your homeowners already does, plus add the business exposure found in renting on Airbnb.

Having an Airbnb Insurance Policy Helps Protect You from the Unknown

When you get an Airbnb insurance policy, it covers you from things you cannot prevent. What if an Airbnb guest slip and fell while staying at your property and claimed you liable? For this, you need Airbnb insurance that would respond and defend you in court, and pay out for medical expenses and potentially punitive damages. What if an Airbnb guest accidently set fire to your home and your homeowners insurance denied the claim as the fire was the result from business activity? For this, you need an Airbnb insurance policy that has building coverage to rebuild your property. When you open your doors to an Airbnb guest, you are opening yourself up to potential property damage and liability claims.  Make certain you have an Airbnb insurance policy from Proper Insurance®.

Is It Worth Having an Airbnb Insurance Policy?

We often see property owners asking if taking out an insurance policy on their Airbnb property is worth the additional expense. The answer to this question depends on a few different factors. First, are you comfortable with taking a significant risk? Remember, if your guest accidentally burns down your home, that’s it – there’s likely going to be no reimbursement since standard homeowner’s insurance does not cover rentals. If your home or property is worth anything, which most are, then insuring it would be a good idea.

Airbnb Liability Insurance

But what about liability? You see, most homeowners worry about their house and property. And those things are important too. But did you know that a liability claim could cost you hundreds of thousands of dollars? When it comes to liability, the most important thing to understand is that your responsible for your guest’s health and safety while they’re staying at your property. If they injure themselves, even through no fault of your own, you could be held liable for their bills. And no property owner wants to foot the bill for a broken bone or worse – permanent disability.

Legal Requirements in Your State

Regardless of the risks, most state and local government do require that you maintain a certain level of commercial insurance when renting out your home for guests. After all, this kind of activity is no different than a hotel business. As a result, making sure you have adequate coverage is important!