AirBnb and Your Homeowners Insurance Coverage

Air Bnb Home Sharing

Being an Airbnb host can help generate extra income and utilize otherwise empty residential space or even your vacation home - but what if something happens to your property or worse, a guest gets hurt on your property? Furthermore, should you expect your current homeowners’ policy to automatically cover an incident that occurs with an Airbnb guest?


To answer these questions, and more, reach out to an insurance specialist here at Aspen Agency to find out what you need BEFORE you delve into the world of home sharing to make sure you are adequately covered. In the meantime, we have a few other things you’ll want to know:


  1. Airbnb does offer “Host Protection Insurance” which is a liability insurance program and may provide up to $1,000,000 USD in liability coverage for a host’s legal responsibility to a guest or third party that gets hurt or has their property damaged due to an incident related to an Airbnb stay, but that may not cover everything and making a claim can be a bit complicated.  


  1. Most standard homeowners’ insurance policies exclude short-term rentals, but there are some specialty policies available that help insure against the unique risks posed by short-term rentals.


  1. Homeowners insurance generally covers the cost of repairing damage to your home caused by fire, wind, or certain other natural disasters. It also offers personal liability protection in case someone is injured while on your property.


With home sharing, the rules are much less black and white. According to the Insurance Information Institute, some insurance companies will allow you to extend your homeowners coverage to a short-term rental if it is a one-time event and you notify the insurer ahead of time. Other companies, however, may require you to purchase a specific endorsement, which is added on to your existing policy to cover a temporary rental.


The rules change even more if you are looking to make Airbnb a business for yourself, meaning you plan to rent out part of your home on a regular basis to generate income. In this case you will need to purchase business insurance. But do not fret, Aspen Agency can help with your homeowners’ policy AND your business policy. Whatever it is you need; Aspen Agency is here to protect the things you love the most.  

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