How to insure your Airbnb
With the rise of travelers looking for wallet friendly accommodations, it’s no surprise that services like Airbnb are continuing to rise in popularity. And as the laws of supply and demand dictate, the more people looking to use short-term rentals, the more people are deciding to utilize their properties to accommodate them. Maybe you’ve been thinking of doing it as a side hustle? If you’ve got the space or extra property, it’s a good way to make a little extra money!
But, at what cost? Are you able to get insurance to help cover the risk of having strangers stay in your place? Much like leaving your home unattended while you are away on vacation, inviting strangers into your home poses a level of risk. Here is how you can insurer your Airbnb, and rent it out with confidence.
Airbnb Host Guarantee
As an Airbnb host, you are able to rent out your property knowing that you have at least some coverage through Airbnb itself. All hosts are offered coverage through Airbnb’s Host Guarantee program. With the Host Guarantee, you get coverage up to $1,000,000 in damages.
It is important to note that there are a few things that are not covered with Airbnb’s program. The Host Guarantee does not protect:
- Cash and securities
- Personal liability
- Shared or common areas
Airbnb stresses that their coverage is not a replacement for your typical property insurance and you should not treat it as such. It is meant to fill in some of the gaps that may be left behind by your pre-existing coverage, and protect you from any damages made to your property.
Utilizing your existing coverage
When using your property for short-term rentals, be sure to check the property coverage you already have. Your current policy should lay out whether or not you already have any coverage for rental purposes, and what will not be covered in a rental scenario. It is important to speak to your insurer and understand your policy, so you don’t have any surprises down the line in the event that you need to put forth a claim.
Finding additional coverage
If the Host Guarantee in conjunction with your existing coverage does not offer enough protection for your short-term rental property, then it may be in your best interests to look for something to help supplement it.
The business of short-term rentals is still a relatively new concept, and many in the insurance world are still trying to figure it out. There are some insurers who will flat out say they do not offer coverage for short-term rental purposes, as they see it as too much of a risk. Others however, have introduced coverage that you can add-on to your policy to help give you additional coverage. Some on a scale of days that you wish to get coverage for, other as rider added to your policy.
However, one important fact to note about the short-term insurance being provided by your insurer, it will not protect you from damaged caused by those renting your space. Which is where the Airbnb Host Guarantee comes in handy.
Talk to your insurance provider
By talking to your broker, you are able to inquire about coverage options, and they will be able to help ensure that your property will be protected while renting it out on a short-term basis.
Even if your property insurer does not offer extended coverage for short-term rentals, it is important that you are honest with them. Being less than truthful with them as to how you are utilizing your property can lead to negative reproductions down the read. At best, any claim you put forth due to something a short-term tenant has done will be denied. At worst, you could lose your coverage all together, and find troubles getting coverage in the future.