Insurance for Airbnb Hosts

Proper Insurance Provides a Comprehensive Airbnb Insurance Policy

Because we developed our Airbnb insurance policy with no occupancy restrictions, full coverage is always in place.

This means you can use your property as an Airbnb or short-term rental, a mid-term or extended stay property, a long-term rental, personally, or even have periods of vacancy.

Proper’s Airbnb Insurance Policy Highlights

  • Commercial policy designed to replace a homeowner or landlord policy
  • Special cause of loss (all-risk) or (exclusions-based) for the building and contents
  • Replacement cost valuation for building and contents (new for old)
  • $1,000,000 of commercial general liability insurance standard
  • Optional upgrade to $2,000,000 of commercial general liability
  • No sub-limit on damage caused by a guest
  • No sub-limit on theft or vandalism by a guest
  • Liquor liability coverage for the host
  • Liability extended to amenities such as pools, hot tubs, bicycles, exercise equipment, small watercraft + more
  • Actual loss sustained business revenue coverage with no time limit
  • Ordinance or law enhancement (Optional)
  • Squatter protection with legal fees and loss of income (Optional)
  • Mechanical, electrical, and pressure system breakdown (Optional)
  • Bed bug and flea enhancement which triggers lost business revenue (Optional)

Don’t Overlook Liability and How It Fits Into An Airbnb Insurance Policy for Hosts

Your biggest exposure as an Airbnb host is Airbnb liability insurance. At some point, if you host or short-term rent long enough, someone will be seriously injured at your property and the chances of bodily injury jury litigation is high.

Because of this, Proper provides $1,000,000 in commercial liability to its Airbnb insurance for hosts, and we encourage hosts to upgrade to $2,000,000 per occurrence, as a million dollars isn’t what it used to be.

Airbnb Insurance Modern Home
Host and guest shake hands in front of Airbnb
A tree fell on the roof of an Airbnb

Does Homeowners Insurance Cover Airbnb?

A California Airbnb homeowner’s insurance lawsuit details an Airbnb host who rented her guest house occasionally, and a tree fell and damaged her property. Even though the property or home was not currently rented via Airbnb and the damage had nothing to do with a guest, the $120,000 insurance claim was still denied by her homeowner’s insurance. The insurance carrier enforced a rental exclusion found in her policy. Please note: these photos are not the actual photos of the insurance claim denial.

Some domestic homeowners insurance carriers offer a home-sharing endorsement as they need to find a solution to the Airbnb phenomenon, but buyers beware. These endorsements are limited in scope and only apply to a “residence premises” or a “primary residence,” meaning the place you live or reside in. They are not designed and do not cover a secondary investment property.

The majority of American communities are starting to regulate short-term rental properties. Obtaining commercial insurance is a prerequisite for owners to obtain a short-term rental permit in almost all recently issued ordinances and laws. Why does that exist?

The reason is public safety. Commercial insurance provides a higher level of protection for not only the owner but the community as well. Airbnb activity is a business transaction, it’s being taxed like a business, and homeowners should carry business insurance. The Proper Insurance policy is a business policy and meets all short-term rental or Airbnb regulations.

Airbnb AirCover is the Elephant in the Room

Before Airbnb AirCover, there was the Airbnb Host Guarantee and the Airbnb Host Protection. Airbnb rebranded and wrapped everything into a new offering to all hosts in 2022. The problem is details, and insurance is all about the details. A question we can never answer is; if Airbnb Aircover is so great, then where are all the positive reviews?

The bottom line is all hosts still need home insurance as AirCover is not home insurance, so at best, we advise our clients to think of it as a backup to the Proper Insurance policy. Airbnb needs hosts and their inventory so AirCover is a great way to get hosts to list on the platform.

It’s only a matter of time until you have significant property damage or, in the worst-case scenario, a serious bodily injury claim if you rent your Airbnb property for an extended period. When that occurs, you want an insurance policy that bears your name on it, one that will cover any property damage and/or provide legal defense for you.

The best thing to do is read real Airbnb insurance reviews and make certain you have all reasonable exposure covered.

Get Custom Insurance for Airbnb Hosts

As soon as your listing goes live on Airbnb, you should have already purchased custom insurance for Airbnb hosts. If you have not, you have technically violated your homeowners or landlord insurance contract, so custom. Both contracts specifically exclude “business pursuits” and have a misrepresentation clause that states that the insurance contract is void if there is a misrepresentation from the insured. It’s a breach of contract.

Please, do not list your property on Airbnb until you have notified your insurance agent of exactly what you are doing and you have in writing from an underwriter that you are cleared and covered under your policy for both property damage and liability claims involving an Airbnb guest. Sending your online Airbnb listing to your agent has always been the best way to verify if coverage exists.

Many agents advertise they offer custom Airbnb insurance for hosts and will try and sell you a limited home-sharing endorsement only valid for “residence premises” or “primary homes,” or they will sell you a landlord policy branded as an Airbnb insurance policy. Not all insurance is created equal; you must ask tough questions and get answers; such as does this Airbnb insurance policy cover theft from a guest, or better, does this Airbnb insurance policy cover intentional or malicious damage to my home from a guest?

The only way to get comprehensive Airbnb insurance for hosts is with a commercial policy that can entirely replace the coverage the host has. The Proper Insurance policy was custom-penned for Airbnb properties and is the most comprehensive insurance an Airbnb host can purchase.

Airbnb Insurance Carriers

Insurance Carriers Do Not Support the Airbnb Phenomenon

Don’t be fooled by Airbnb home-sharing endorsements, as they are limited in coverage and do not have the horsepower needed to insure your rental comprehensively.

Coverage Gaps: A term you often hear but rarely investigate. Typical coverage gaps, limitations, and exclusions found in our competitor’s insurance policies for Airbnb hosts would include:

  • Intentional acts by a renter, such as vandalism and limits on theft or damage caused by a renter
  • Liability exclusions such as liquor, animals/pets, punitive damages, communicable disease, amenities such as a hot tub, and no coverage extensions off-premise
  • No business income loss, no coverage for an invasion of privacy claim, and personal liability only, which excludes business pursuits
  • Limits on backup of sewers and drains, ordinance or law, and vacancy
  • No property or liability coverage from bed bugs

Understanding Insurance for Airbnb Properties

Getting insurance for your Airbnb property should not be difficult, but it is because the insurance industry shifted from coverage to cost over a decade ago. Our job at Proper Insurance is to demystify the Airbnb insurance market, earn your trust, show you our upgrades, and get you comfortable with upgrading your insurance for your Airbnb property.

Most owners have “triple use” of their rental property. Periods throughout the year it’s being rented short-term, other periods it’s being used personally, and periods it’s likely unoccupied. This multi-use of a property creates big problems for insurance carriers. Underwriters like simple and predictable, which this is not!

To solve this problem, Proper Insurance removes all occupancy restrictions in insurance contracts and the vacancy clause. This provides full policy coverage for the Airbnb property at all times if used. There is no more worrying about a rider for this and a rider for that.

In addition, Proper created trademarked endorsements that no other carrier offers, such as providing lost business revenue in case of a bed bug infestation at your property. The endorsement comes with a $15,000 limit and has no deductible. These are the types of custom coverages you get when you work with Proper.

People sit in the hot tub of at Airbnb

Airbnb Host Protection

The “free” Airbnb Host Protection provides $1,000,000 of liability coverage to the host for every booking through the website. Unlike the Host Guarantee, this is an actual insurance policy. Unfortunately, there are many concerns and exclusions.

In 2022 Airbnb rebranded the Host Protection and Host Guarantee under the umbrella of AirCover. The biggest concern is the fact your name is not on the policy, meaning you are not a named insured, in turn providing you no policy rights. You are completely relying on Airbnb to provide the coverage in the event you are sued in a liability claim at your property.

The #BookDirect movement, of course, nullifies the $1,000,000 of Airbnb Host Protection. Plus, what happens when an Airbnb rental is used by the host personally or is unoccupied? The best thing to do is to have complete coverage from Proper Insurance, which offers coverage 24/7/365, regardless of the property use.

Proper is a Complete Airbnb Home Insurance Provider

Airbnb hosts get different answers on homeowners insurance or home insurance depending on who they ask. Many agents suggest a homeowners policy with a rental rider, others think a dwelling or landlord insurance policy is superior. The truth is commercial insurance is the only way to get complete insurance coverage for short-term rental properties. Commercial insurance has the horsepower needed to provide all the coverage.

When you entrust your property to a paying guest, you are opening yourself up to serious financial risks. On one side, the property itself is a huge asset that needs to be protected. What if a guest decided to throw a cigarette in a trash can which ultimately burns your entire property down? Is your insurance company going to rebuild your property no questions asked?

On the other side, you now have huge liability exposure as you are essentially operating a hotel business and are subject to hospitality laws. What if a guest falls down the stairs or off the deck and is seriously injured? You could be looking at a $1,000,000 lawsuit without including the cost of attorneys’ fees. Is your insurance company going to lawyer up and potentially settle a $1,000,000 claim?

Open living space of a short-term rental property
A beach front Airbnb condo

We Offer The Best Insurance for Airbnb Hosts

Proper Insurance is often reviewed as the best insurance for Airbnb hosts. Think of it as homeowners insurance, landlord insurance, and business insurance all combined into one.

We offer special form (all-risk) coverage for both the building(s) and contents which is the best and broadest insurance coverage form offered today. We combine this with replacement cost valuation (new for old) which is also the best. Many carriers offer actual cash value which takes into account depreciation, so at claims time, you end up with a much smaller check. Think of an older roof that sustains hail damage. You want a new roof, not a check for the actual cash value of your old roof.

With trademarked liability endorsements specifically tailored to Airbnb exposure, no other insurance carrier comes close. hosts need the best and that’s what Proper offers. One example would be our liquor liability coverage. We are the only insurance provider for Airbnb hosts in the U.S. to entirely remove the liquor liability exclusion found in all commercial general liability forms.

A potential claims experience is why you are paying your insurance premium. Proper is the best-reviewed Airbnb insurance provider online, with dozens of positive claims reviews found on BBB, Yelp, Facebook, Google, and many others.

Airbnb Insurance FAQs

What does Airbnb insurance not cover?

Airbnb offers hosts free coverage known as AirCover. However, it’s important to note that Airbnb explicitly states that AirCover is not an insurance policy and should not be considered a replacement for personal insurance. For hosts seeking a more robust and comprehensive insurance solution, Proper Insurance stands as the nation’s leading provider for Airbnb insurance specifically tailored to meet the unique needs of Airbnb hosts, ensuring that your property, liability and business revenue are protected. The Proper Insurance policy completely replaces a homeowners or landlord policy and provides coverage to meet the risks of short-term renting like Airbnb or Vrbo. 

What is the best insurance for Airbnb hosts? 

The best insurance available to Airbnb hosts is Proper Insurance. They have the most comprehensive policy on the market that completely replaces a homeowners or landlord policy with specialized coverage for short-term rental properties and the risks of a short-term rental business like an Airbnb or Vrbo.  

Is Airbnb insurance enough? 

No, Airbnb’s free AirCover coverage is not enough. The biggest concern is the fact your name is not on the policy, meaning you are not a named insured, in turn providing you no policy rights. You are completely relying on Airbnb to provide the coverage in the event you are sued in a liability claim at your property. The best coverage available to hosts is the specialized short-term rental insurance policy offered by Proper Insurance.

What does Airbnb insurance cost? 

Airbnb’s AirCover is a form of protection provided to hosts at no additional cost when using the booking platform but with no cost comes unreliable coverage and limitations. Aircover is not equivalent to a personal insurance policy. Proper Insurance offers a comprehensive Airbnb insurance policy specifically designed for short-term rental properties, with costs varying based on individual property characteristics and coverage needs. 

Do you need to have insurance to start an Airbnb? 

Yes, it is wise to have a short-term rental-specific insurance policy if you are operating an Airbnb like the comprehensive coverage offered by Proper Insurance.  

Does homeowners insurance cover Airbnbs? 

When insuring a business operation like an Airbnb, a homeowners insurance policy has several gaps and limitations that Airbnb hosts should be aware of. Even with a home sharing host activity endorsement, the coverage is limited in scope and only applies to a “primary residence,” meaning the place you live or reside in. They do not cover secondary investment properties. 

Does my Airbnb need extra liability insurance? 

Yes, if you operate an Airbnb you have a higher risk associated with your property and you should invest in a comprehensive short-term rental insurance policy like the one offered by Proper Insurance.  

Does Airbnb charge for insurance? 

Airbnb provides hosts with AirCover for free but it is not insurance. It’s solely up to Airbnb whether or not to respond to the host’s claim or not. Additionally, it’s important to note that the host is not a named insured which means they have no policy rights. It’s strongly advised that hosts seek short-term rental-specific insurance like the policy offered by Proper Insurance.