Because Airbnb is a business, it’s not only highly recommended but sometimes legally required for you to obtain insurance coverage for you and your property. Your standard homeowner’s insurance is typically not adequate for use in rental situations. Most homeowner insurance plans contain business activity exclusions that may reject claims involving business activity. Which, in this case, would be Airbnb rentals. If you’re renting out your property for use without proper coverage, you’re placing yourself at risk for liability lawsuits or property damage that may not be covered under your current plan.
Getting an Airbnb Insurance Policy is a Better Option
Commercial liability insurance will cover your Airbnb rental in most cases, but the premiums for this type of insurance are typically quite high. Instead, you may want to consider obtaining an insurance coverage plan specifically tailored to Airbnb rentals instead. It gives you much of the same coverage, depending on which plan for both that you would go with, but the premiums are much more manageable than those of most standard policies for commercial needs. Plus, an Airbnb insurance policy can double as homeowner’s insurance as well. That way, you can be rest assured that all your coverage needs are being taken care of with one simple and affordable plan.
Commercial Liability Coverage: Why You Need It for Airbnb
If you’re thinking of relying on Airbnb’s liability coverage, think again. Airbnb’s built-in plan lacks the comprehensive coverage offered by a standard commercial liability insurer. Issues like malicious damage and assault aren’t covered. Plus, there are a significant number of other exclusions and requirements before you’re eligible for reimbursement. In fact, many property owners have reported denied claims or reduced payouts after filing a report with Airbnb. If you can’t afford to pay tens of thousands of dollars in liability costs, then don’t rely on Airbnb to protect you. Instead, sign up for a professional plan that’ll keep you and your property safe.
Not All Liability Plans for Short-Term Rentals Are Equal
When it comes to liability insurance for short-term rentals, not all coverage plans are the same. In some cases, you may have even been offered a free guarantee or insurance if you’ve decided to list your property on a popular rental site like Airbnb. In these situations, the free coverage often comes with an extensive list of exclusions that leaves you exposed and at risk if a guest files a liability claim.
Remember – liability claims can add up to millions of dollars in legal costs, time, and more. No business owner ever wants to find themselves facing a lawsuit by a former guest but the reality is, it can happen to anyone. And if you’re in the rental business – liability issues are one of the biggest concerns of any property owner. It only takes one claim to completely shut down your business and drain your finances. Because of this, it’s critical that you obtain adequate commercial liability insurance from a rental insurer.
More States Are Legally Requiring Liability Insurance. Are You Covered?
If you’re thinking about listing your property on Airbnb, FlipKey, HomeStay, or another rental site, you might want to ensure you have adequate commercial liability coverage first. More states, cities, and local counties are beginning to require that property owners have proper liability coverage before they list their home up for rent.