The VanDyke Group | Insurance Coverage for Airbnb and Home Sharing
Renting a property can be very rewarding, but know the basics about insurance coverage and the questions you should ask your agent before renting.
Airbnb, Home Sharing, homeowner insurance, insurance, specialty insurance, rental properties
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Beach House Room

01 Jun Airbnb and Home Sharing Risks

You’ve got everything set for your rental guests. The linens are clean, the bathrooms are washed and you’ve verified their arrival. But are you ready with your insurance coverage for their stay?

Airbnb is just one of many popular sites to rent out your home and make a little extra money. As convenient as this is, there are potential risks that your current homeowners policy may not cover and you may be left with the property damage and the liability. Your current homeowners policy was drafted without the risks of commercial renting in mind so it won’t cover property damage that’s caused by Airbnb guests.

Each insurance carrier has its own restrictions and policies regarding renting your property, so it is best to go over the coverage limits with your agent to see where there are potential gaps in coverage. Some may require an additional endorsement be purchased while others may want advance notice of rentals. If renting becomes a regular occurrence, your carrier may require a commercial insurance policy be purchased. Another alternative is to check with your insurer if they offer home-sharing liability insurance policies as these can be purchased on a month-to-month timeframe.

But what about the host guarantee that Airbnb has? This program will reimburse eligible hosts for damages up to $1 million. This is not actually insurance and it is subject to a long list of terms, conditions and exclusions. To understand these limits, read the full list of terms and conditions on the company’s website.

There is host protection insurance through Airbnb as well. However, this is also subject to limits and exclusions such as the covering of intentional acts that are not the result of an accident, or property issues like mold and bedbugs. These gaps in coverage would need to be covered by your own policy in order to have full protection.

When you own or rent a condo, verify that you are allowed to sublet or rent out accommodations, as many condo board policies do not allow rentals and failure to comply could result in eviction or legal action against you.

Once you look into the stipulations of coverage and speak to your agent about the correct coverage for your situation, you are ready to sit back, relax and enjoy the extra income.


Source: Zywave, Inc. 2017

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Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your medical professional or legal representative for information specific to your needs.