Standard home insurance policies carry personal liability coverage and will likely not respond to Airbnb activity. Most insurance companies consider Airbnb activity a business transaction. For this, you need to carry business insurance. When someone pays you money for the service of your home, this is a transaction and just about anything can happen. What if an Airbnb guest fell in your home, went to the hospital, and their health insurance carrier claimed you liable for negligence? For this you would need to be commercial general liability. Without adequate coverage, you might end up having to pay your guest’s medical bills. That’s not something you want to be responsible for, especially when the average cost for a 3-day hospital stay is $30,000. By maintaining insurance coverage for Airbnb, you can help keep both your home and your assets safe.
Property Damage Insurance to Your Airbnb Home is Just as Important
Most all insurance claims are related to property damage. Either water damage, wind damage, hail damage, fire damage, but what about damage caused by an Airbnb guest? What if an Airbnb guest accidently set fire to your kitchen and you had to file an insurance claim? Most all home insurance carriers exclude damage caused by a business transaction, and Airbnb rentals are businesses. For this to be covered you need a commercial insurance policy. A policy that could replace the current coverage on the home, and provide insurance coverage for your building, contents, business income, and liability. It’s never been more important to carry comprehensive home insurance for your Airbnb rental.