What Airbnb Hosts Need to Know About Insurance

What you should know about opening up a home away from home.

The business of Airbnb has kicked off in recent years, with couples, families, work groups, celebrities, and more enjoying the delights of a home away from home. Renting out a space on Airbnb is a great way for homeowners and renters to make some extra money without doing too much. However, it does come with a certain degree of risk. Since Airbnb is still relatively new, the risks dive into uncharted territory, causing homeowners grief if accidents or incidents do occur.

Before you open your home to guests, here’s what you should know.

  • Your homeowners insurance may not cover you.

Homeowners insurance policies tend to be very specific in terms of what they cover. Generally, using the home for business purposes is excluded from coverage. In essence, if you’re renting out your home on Airbnb, your insurance company could deny your claim for any damage caused by your guests, leaving all of the expenses down to you. The same thing goes for renter’s insurance; your policy may exclude other guests and liability accidents.

  • Your home insurance policy could be canceled.

Your insurance company could decide that having you as a customer is too risky if you’re an Airbnb host. Since there are numerous people coming and going on your property, the chances of a claim soar. As a result, the insurer could cancel your existing policy or require you to take out a commercial property policy instead. Talk to your insurer to determine how to secure the right coverage for your needs.

  • You need more than Airbnb’s host protection.

Airbnb is kind enough to provide its own insurance for hosts, which typically provides up to $1 million in liability coverage for claims involving bodily injury or property damage. While this coverage can give hosts some peace of mind, it doesn’t cover everything. The program doesn’t include intentional acts such as assault or sexual abuse, as well as communicable diseases, pollution, and more.

It’s wise to have solid protection in place before opening up your property for guests. Talk with your insurer to determine what is and isn’t included in coverage. For all of your insurance needs, talk to the team at Lou Aggetta Insurance Services in Pleasant Hill. We are here to protect your assets.