Not every Airbnb host fully understands the business side of the short-term rentals. Some believe that it is their home, and they can do what they please with it. While this is partly true, it is also partly inaccurate. If you were to rent out your property on Airbnb without the proper insurance policy in place, you could wind up with some very stiff consequences. Damage caused by a renter, or bodily injury from a renter could go uninsured.
Homeowner’s Insurance Policies Typically Won’t Cover Airbnb
In the clear majority of cases, a homeowner’s insurance policy is not going to cover any type of property damage or bodily injury you may have during an Airbnb rental. In fact, not only will your homeowner’s insurance likely deny any claim, but often you will be canceled. Short-term renting on Airbnb is a business transaction and you need business insurance. You need a business insurance policy that can replace your current homeowners; one that covers you while you are there, and while you have Airbnb guests.
Other Things You Need in Terms of Insurance for Airbnb
In Summary, Airbnb hosts need an insurance policy that covers their building(s), contents/personal property, business income, and commercial general liability. As far as property coverage for your building and contents, make sure it’s special form all-risk coverage. This means coverage for fire, theft, vandalism, water damage, wind, hail, and much more. The Airbnb host should carry business income coverage that is actual loss sustained, meaning they are paid what they are losing in rent if the property is unrentable as the result of property damage. For liability insurance, the Airbnb host needs commercial general liability that protects the premise itself and beyond the premise should something be tied back to the Airbnb Host.