Do you need special insurance for Airbnb?

The rise of Airbnb has turned some homeowners into hoteliers. While earning a bit of income from your property might seem like a good idea, it does come with its own host of changes to your insurance coverage that you should be aware of before renting to anyone. But do you need special insurance for Airbnb, at the end of the day?

It’s not concrete everywhere, but the answer could be yes.

Airbnb insurance: the industry standard

The most important thing that you should know is that most standard homeowner insurance policies exclude short-term rentals, such as Airbnb. Most even exclude long-term rentals, as it happens. What this means is that any damage caused by the renter to your property would NOT be covered by your insurance policy.

If your policy excludes short-term rentals, your insurance company will not compensate you for damage from an Airbnb renter. You would not be able to claim any damage through your insurer without having made special arrangements with your insurance company in advance.

At aha insurance

Different insurers approach short-term rentals in different ways. At aha insurance, we take a pragmatic approach to the trend and provide certain types of rental coverage. If you live in your home year-round and rent out a room or portion of your home as a short-term rental, aha insurance will consider insuring your home. We will not insure a property that is rented in its entirety, though.

If you only rent a portion of your home, aha insurance wants to understand your plans and will take a look at your listing, photos, and so on.  Providing that everything is within regulation, we will provide coverage for your home.

Other options

It should be pointed out that Airbnb does offer “Host Protection” insurance on its own, intended to protect property owners in the event of legal action. Be sure to perform the due diligence on your insurance coverage prior to your first rental, however, as these policies are subject to certain conditions, limitations, and exclusions. “Host Protection” policies also tend to come with low limits of coverage that may not be enough to pay for serious damage to your home.

Do you need special insurance for airbnb when the company provides its own kind? It’s probably a good idea, since the coverage is limited. Short-term rentals can be a great way to earn a bit of extra money, but be sure to consider the insurance implications before you allow a stranger into your home.

Get a 5-minute quote online to see your rate while renting out part of your home!

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