Does Your Homeowner’s Insurance Cover Your Airbnb?
If you have been reading our blog for a while, you probably know how important homeowner’s insurance is. It protects you against losses spanning from vandalism to fire. If you are going to rent out a property separate from your residence or even a room in your home, you will need to have a special kind of insurance called Short-Term Rental Insurance.
Short-Term Rental Insurance
Short-Term Rental Insurance covers your home and personal property while you have a renter on your property. You will also be protected against liability expenses. Imagine what would happen if a guest fell down your steps and was paralyzed.
Airbnb Host Protection Insurance
Airbnb offers an insurance option that provides up to one million dollars in liability coverage if a guest files a lawsuit related to bodily injury or property injury. Host Protection Insurance is “primary” insurance, meaning if a liability claim arises and it’s covered, Airbnb will handle the claim, and you don’t have to use your personal insurance. These claims include things like:
Slips and falls by a guest in your home.
A guest is injured in a common area of your condo/apartment building, and they sue you and the landlord. While the landlord needs to cover their expenses, the Host Protection Insurance will cover your liability (up to one million dollars)
A guest causes an accidental injury to a 3rd party in a common area of your condo/apartment building. Note that the injury must be accidental. Airbnb’s Host Protection Insurance doesn’t cover intentionally caused injuries.
But the Host Guarantee isn’t Comprehensive
Their Host Guarantee also reimburses you for up to one million dollars in damages caused by a guest, but it isn’t comprehensive.
- You will need a supplemental policy to offer coverage for weather, theft, and break-ins.
- Reimbursement for losses due to the stolen or damaged property is based on the actual cash value rather than the replacement value of the items. So, you could still be out of pocket if you need to replace the items.
- Damage caused by “acts of nature” aren’t covered.
- Thefts by non-guests are not covered.
- High-value items like jewelry, artwork, collectibles, and cash are not covered.
To receive reimbursement from the Host Guarantee, you must submit your request within 14 days of the guest’s checkout or before your next guest checks in (whichever happens first). That can be a tight timeline!
Back to Short-Term Rental Insurance
Short-term rental insurance is an essential part of your business. It will cover what Airbnb’s coverage leaves exposed. This includes things like:
- Protection for damage to others’ property that is caused by you or your property (Imagine a tree falling on a guest’s car)
- Thefts that happened while a guest stayed in your Airbnb
- Comprehensive protection from damage caused accidentally by a guest
- Lost rent due to covered losses
Are You Considering Running an Airbnb?
Protect yourself with adequate insurance. Contact the independent insurance agents at Hermann insurance Services to find out what you need for coverage. We’re here for you!