More and more Americans are becoming Airbnb hosts, yet insurance coverage is often overlooked. Great Airbnb host insurance is tough to find because most insurance agents do not specialize in it. Essentially you are taking a single-family home, condo, or duplex and installing a well-lit OPEN sign in the front window. An Airbnb host is a business owner, and business owners need professional insurance.
The only way to cover all your exposure and get comprehensive Airbnb host insurance is to purchase homeowner’s insurance, landlord insurance, and business insurance. An Airbnb host may use the rental property personally, then times they may rent it long-term, and of course, short-term stays are what makes it an Airbnb rental property.
The Proper Insurance program is the only Airbnb insurance product that combines all three property uses; personal, landlord, and business. We have no occupancy restrictions, which means we broadly cover Airbnb hosts.
An Airbnb Host Insurance Policy Should Cover Your Building(s), Contents, Business Income, and Liability
Airbnb hosts work hard to deliver outstanding guest experiences, which should result in a profitable rental business. To protect that business, and Airbnb host should understand building, contents, and business income insurance coverage.
Building insurance should be open perils or ‘all-risk’ insurance coverage. This means that everything is covered, such as fire, wind, hail, etc. unless specifically excluded. Open perils building insurance is the broadest coverage or protection an Airbnb host can purchase.
Contents insurance is similar to building in a sense it should be open perils, but it’s for an Airbnb hosts stuff, such as furniture, décor, dishes, linens, electronics, and more. All the personal property inside the building needs insurance coverage, and it’s essential not to overlook theft and vandalism as they are common exclusions in Airbnb host insurance policies.
Business income insurance kicks in when an Airbnb rental property is unable to rent to guests due to a covered insurance peril such as broken water pipes. Water damage is a typical insurance claim at Airbnb rental properties, and the result is always canceled bookings, sometimes months out, as water damages everything and restoration takes time.
Liability insurance protects Airbnb hosts from ‘bodily injury’ or property damage they could ultimately be found liable for. The most common liability insurance claim is the slip and fall, and it is critical hosts have adequate coverage with big occurrence limits. Proper recommends a minimum of $1,000,000 per occurrence.