AIRBNB INSURANCE FOR HOSTS
Hosting on Airbnb comes with unique risks that standard Homeowners or Landlord policies fail to cover leaving your property, business income, and liability alarmingly exposed. Proper Insurance fills these gaps by completely replacing your current insurance policy with comprehensive protection. A perfect fit for Airbnb hosts, including direct bookings.
Standard Insurance Policies Weren’t Built for Airbnb Exposure
Most traditional Homeowners and Landlord policies were never designed for short-term rentals, leaving hosts exposed when a paying guest is involved. 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 short-term rental comprehensively.
Common Insurance Gaps for Airbnb Hosts
Typical coverage gaps, limitations, and exclusions found in our competitor’s insurance policies for Airbnb hosts would include:
Lack of coverage for intentional acts by a guest, 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 loss of business revenue coverage, 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 for bed bugs or fleas
For Airbnb hosts, these gaps can translate into thousands of dollars in out-of-pocket expenses if a claim occurs while hosting, not to mention the burden of lost income from a property that isn’t listing-ready.
Airbnb Host FAQ: Does Homeowner’s Insurance cover Airbnb Hosts?
No, Homeowner’s insurance does not typically cover Airbnb business operations. Some domestic Homeowners insurance carriers offer a home-sharing endorsement as they seek a solution to the Airbnb phenomenon, but buyer 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 to cover a secondary investment property.
Proper is the Best Insurance for Airbnb Hosts
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.
| Coverage | Proper Insurance Policy | Airbnb AirCover |
Insurance contract?Why it matters: An insurance contract grants you legal rights — including the right to dispute a denial and oversight by your state’s insurance commissioner. AirCover is a platform guarantee with neither. |
Airbnb AirCover: Not an insurance contract. A contractual reimbursement program governed by Airbnb’s Terms of Service.
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State regulatory oversight?Why it matters: Every state has an independent insurance commissioner to protect the insured — not the insurer. AirCover operates outside that framework entirely. |
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Damage, theft & vandalism by a guestExample: Guest throws a party and damages the contents of the home and structure. |
Proper Insurance: Covered via Property Entrustment — no sub-limit on guest-caused damage, up to the full policy Limit of Liability.
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Airbnb AirCover: Must pursue all rights and remedies against the guest first before Airbnb will consider the claim. Coverage is discretionary and platform-managed.
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Booking channel coverageExample: A guest books directly through your website or via Vrbo and causes significant property damage. |
Proper Insurance: Covers all booking channels — Airbnb, Vrbo, direct bookings, and more.
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Airbnb AirCover: Only applies to bookings made through the Airbnb platform. Direct bookings and other OTAs are not covered.
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Replacement costsExample: Roof damage from a covered cause of loss. |
Proper Insurance: Pays pure replacement cost — the full amount needed to replace the damaged item (new for old). No depreciation deducted.
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Airbnb AirCover: Subject to Airbnb’s discretionary review. No guaranteed replacement cost valuation.
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Loss of business revenueExample: A claim occurs at your property that takes your Airbnb out of commission for two months. |
Proper Insurance: Actual loss sustained — provides a check for the actual revenue lost up to the limit of your choosing, with no time limit.
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Airbnb AirCover: Limited income protection tied to Airbnb bookings only. Subject to platform review and approval.
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Liability for amenitiesExample: A guest gets injured using your provided bikes, kayaks, pool, or hot tub. |
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VacancyExample: Damage occurs at the property during the shoulder season or a period of vacancy between bookings. |
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Class action rightsWhy it matters: By accepting AirCover terms, hosts waive the right to join a class action lawsuit against Airbnb related to Host Damage Protection. |
Airbnb AirCover: Hosts agree to a class action waiver as part of the Host Damage Protection terms.
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Airbnb squatterExample: A guest rents your property for one week but overstays their checkout and is now protected by law as a tenant. |
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Bed Bugs Bed Bugs example: Liability from bed bug bites and the cost to exterminate them. |
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Replaces homeowners or landlord policy?Why it matters: AirCover is a platform add-on, not a standalone policy. Hosts still need separate property insurance — which may not cover STR activity at all. |
Airbnb AirCover: Does not replace your homeowners or landlord policy. Hosts remain exposed to gaps in their underlying coverage.
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Understanding AirCover’s Coverage Limitations
Before Airbnb AirCover, there were the Airbnb Host Guarantee and the Airbnb Host Protection. Airbnb rebranded and wrapped everything together now offering AirCover to all hosts. The problem is the details, and in insurance it’s 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 truth about AirCover is simple: Airbnb AirCover is not home insurance, and it was never intended to replace an actual insurance policy.
All Airbnb hosts still need home insurance, and AirCover does not provide the comprehensive property and liability protection that a dedicated Airbnb insurance policy does. So, at best, we advise our clients to think of AirCover as a marketing promise and backup layer—not a replacement for true coverage.
Don’t Overlook Liability: Why Hosts Need More Than Airbnb AirCover
Your biggest exposure as an Airbnb host is Airbnb liability insurance. Standard Airbnb AirCover does not include the robust Commercial General Liability protection that most cities’ Airbnb regulations and lenders require. 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 are high.
Because of this, Proper provides $1,000,000 in Commercial Liability for 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. Without comprehensive liability, a single guest incident could wipe out years of rental income and even jeopardize your personal assets.
What Hosts Should Look for in an Airbnb Insurance Policy
The best thing to do is read real insurance reviews to know what to expect, and make certain you have all reasonable exposure covered.
Here’s what Airbnb hosts need in an insurance policy for their short-term rental:
No sub-limit on Airbnb guest-caused damage, like $130k water damage claims
Specifically designed to replace a Homeowners or Landlord insurance policy for Airbnb hosting
Loss of Airbnb rental revenue reimbursed with actual loss sustained, with no time limit (and is only subject to your chosen limit)
Special form “all-risk” or exclusions-based coverage form
Replacement cost valuation for the building(s), roof, and contents with no cosmetic damage exclusion
Commercial General Liability to respond to guest injuries, lawsuits, or off-premise exposures
Proper Insurance Provides Comprehensive Airbnb Insurance for Hosts
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, and help you better protect your Airbnb property and revenue.
The Proper policy is underwritten by Lloyd’s of London and Concert Specialty Group, customized for short-term rental risk, and recognized by major mortgage lenders nationwide. Proper is the leading home insurance for Airbnb hosts who need coverage that works 24/7—whether rented, vacant, or used personally.
Understanding Insurance for Airbnb Properties Through Proper
The Proper Policy is robust Commercial Homeowners coverage built for Airbnb hosts and SuperHosts helps fill the gaps seen in traditional Homeowners and Landlord policies:
Business activity inclusions
Protection for guest-caused damage and theft
Amenities liability (pools, hot tubs, bikes, fire pits)
Income loss from cancellations if property is unlivable
Liquor and privacy exposures are addressed
Proper is a Complete Airbnb Home Insurance Provider
Airbnb hosts get different answers on Homeowners insurance or STR 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 Airbnb properties. Commercial insurance has the horsepower needed to provide all the coverage.
When you entrust your property to a paying guest, you expose yourself to significant financial risks. On one side, the property itself is a huge asset that needs to be protected. On the other side, you now have huge liability exposure as you are essentially operating a hotel business and are subject to hospitality laws.
Airbnb Host FAQ: “Does the Proper policy include a Vacancy Clause?”
Most owners have “triple use” of their rental property: sometimes it’s being rented short-term, other periods it’s being used personally, and in other instances, it’s likely unoccupied. This multi-use of a property creates big problems for insurance carriers. To solve this problem, Proper Insurance removes all occupancy restrictions in insurance contracts and the vacancy clause—meaning that we offer full policy coverage for the Airbnb property at all times.
Real Review of Proper’s Coverage & Claims Handling
“I’ve had coverage with Proper insurance for my high-end vacation rental property for a few years now. Coverage is second to none, as is the customer service…I recently even had an issue with my local town regarding local STR regulations around insurance coverage, and Payton took the matter up himself with the town and helped resolve it for me, showing them that I was more than adequately covered under my Proper insurance policy. High recommendation from me!”
– Stone F.
Get a Quote: Proper 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 Commercial insurance all combined into one.
Airbnb Insurance Frequently Asked Questions
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, which provides 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.
What should I ask my broker about insuring my Airbnb?
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. Ask your Airbnb insurance broker questions like “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?” Get more questions to ask your broker in our helpful, free download.
Are there local Airbnb regulations I should care about?
Yes, 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 many recently issued ordinances and laws.
The reason? 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 or exceeds all short-term rental or Airbnb regulations in each city.
I want to become an Airbnb host. What should I do for Airbnb insurance?
As soon as your listing goes live on Airbnb, you should have already purchased specialized insurance for Airbnb hosts. If you have not, you may have violated your Homeowners or Landlord insurance contract. 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.
Why is Proper Insurance the best insurance for Airbnb hosts?
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.