Does Your Insurance Still Provide Coverage If You Rent Your Home Through Airbnb?

Listing your home on Airbnb can be an excellent source of additional income, but it also raises crucial questions regarding insurance coverage. Many homeowners assume their standard insurance policy will cover any incidents that occur while their property is rented out. However, this is often not the case.

Homeowners Insurance Limitations

Typical homeowners insurance policies are intended to protect personal residences, not business activities. Renting out your home on Airbnb is considered a business activity, which is typically not covered under standard policy. If a guest damages your property or gets injured during their stay, your homeowners insurance may not cover the costs.

Airbnb’s AirCover

To address this gap, Airbnb offers its own insurance program called AirCover. This program provides hosts with up to $1 million in liability coverage and $3 million in damage protection. AirCover can help cover costs related to guest injuries, property damage and even theft. However, it’s essential to read the terms and conditions carefully, as there may be exclusions and limitations.

Additional Insurance Options

Given the limitations of standard homeowners insurance and the potential gaps in Airbnb’s coverage, many hosts opt for additional insurance. Some insurance companies offer home-sharing endorsements you can add to your existing policy. These endorsements can provide coverage for short-term rentals and help shield you from the risks of hosting guests.

Alternatively, you can purchase a separate short-term rental insurance policy. These policies are specifically designed for properties listed on platforms like Airbnb and can offer coverage for both property damage and liability.

Learn More

Before listing your home on Airbnb, it’s crucial to review your insurance coverage and consider additional protection if necessary. Contact Delia Izquierdo Insurance Agency to review your homeowners insurance and make sure you have the proper coverage in place for your situation.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.