AirBnB Homeowners Insurance Guide to Renting your Home

If you are considering renting out your home or a portion of your home as a short-term rental, one of your first concerns should be making sure you have the proper homeowners insurance for your rental property. 

The proper homeowners insurance coverage will make sure you are fully protected in the case of damage to your property. We thought it would be a good idea to have a look at what type of coverage you should be carrying for an Airbnb rental. 

Does homeowners insurance cover Airbnbs?

While it varies by insurer, in many cases, your homeowners may cover specific losses related to your Airbnb if you only rent it now and again.  However, if you rent your property on a year-round basis you may want to consider purchasing a separate insurance policy that is short term rental specific. 

When you rent out your home, you are technically operating a business out of your home and many standard homeowners insurance policies exclude coverage if the property is being used as a business. Always make sure you fully understand the coverage your policy provides and if you have questions check with your agent. 

In order to make sure you are fully protected you may want to put a standalone policy in place or make sure your homeowners policy has a home sharing endorsement. As an example, Allstate offers a HostAdvantage endorsement for their homeowner policies which provides coverage for home-sharing rentals. 

This endorsement will provide coverage for damage to your home or personal property as well as theft. Coverage will vary by insurer so it is always a good idea to talk to your agent before renting your home out. 

What protection does Airbnb’s insurance offer?

Airbnb’s does offer insurance, called AirCover for Hosts. The AirCover policy includes damage protection as well as liability coverage. AirCover protection is free from Airbnb and provides the following coverages:

AirCover host damage protection: The host damage protection portion of the policy provides up to $3 million in coverage. It will help cover repair cost if a guest damages the inside or outside of your property. It includes your personal property as well as appliances and vehicles. It provides protection for the following

• Damage to your home, property or belongings caused by guests.
• Damage to your parked vehicles or boats caused by guests.
• Lost income if other bookings must be canceled due to unexpected guest damages.
• Extra cleaning required due to damage caused by gusts.

This coverage excludes bodily injury to guests or other people, theft of cash or securities.

AirCover host liability coverage

AirCover also includes Host liability insurance. This coverage offers up to $1 million in bodily injury liability coverage if a guest is injured on your property during their stay. It will also step up if a guest’s property is damaged or stolen while staying at your Airbnb. It offers protection for the following:  

• Bodily injury liability for guests and other people.
• Property damage coverage for guests’ personal belongings.
• Property damage in common areas, like building lobbies, caused by a guest.

Host liability insurance excludes intentional damage, injury, or situations covered under Host damage protection.

What does AirCover exclude?

While AirCover provides coverage for short term rental specific damage, it does exclude coverage for many of the perils that a standard homeowners policy would cover such as:

• Wildfire
• Wind 
• Lightning

The majority of insurance experts recommend carrying both a home-sharing policy as well as a standard homeowners policy.

Where to find insurance for your short-term rental

If you are looking for additional short-term coverage there are a number of homeowner insurance companies that offer home-sharing and short term rental coverage. Here are a few insurers that offer short term coverage or an endorsement on your homeowners policy:

• Allstate
• Proper Insurance
• Erie
• USAA

It is also possible to purchase a standalone short term rental policy from insurers such as Proper Insurance. 

Is AirCover insurance enough?

In most cases, it will depend on the value of your home as well as your other assets. Check with your agent regarding the amount of coverage they recommend to properly protect your home. In addition to the proper amount of homeowners insurance, if your home is located in an earthquake or flood prone area you may need to carry earthquake or flood insurance.