What you need to know about insuring your Airbnb

By: Denise Koslowsky

With Spring Break on the horizon and summer travel in the near future, those who own a property they rent as an Airbnb need to be informed about their insurance liability.

That is where we come in!

As your insurance expert, we want to make sure you understand the coverage you currently have and what you can do to protect yourself from potential threats. It is important to know that your homeowner’s insurance may not automatically cover property damage, nor will it protect you against liability claims and Airbnb Host Insurance doesn’t cover everything.  Below is valuable information regarding all three that you need to know.

What you need to know about your homeowner’s policy
A typical homeowner’s policy will cover guests to your home and in some cases when you rent out your home to a tenant.  The line is drawn when you are renting out your home or a portion of your home as a vacation destination rather than a residence. If you are regularly renting out your home or part of your home, the insurance company will look at this as a business activity which means a typical homeowner’s policy will not cover you should something happen during an Airbnb rental.

What you need to know about Airbnb Host Insurance & Host Guarantee
Airbnb offers Host Protection Insurance, which offers homeowners up to $1 million of coverage against injuries that happen to guest while they are on your property.  It will also provide coverage when a guest’s property is damaged.  It may be a good idea to have a conversation with your insurance specialist.  You’ll want to be sure any risks unique to your situation are covered and a specialist like the ones at Advocate Brokerage will be able to discuss your options.

Airbnb also offers Airbnb Host Guarantee which provides protection for your home and personal property.  The program covers your structure and property up to $1 million under certain conditions.  Exceptions include pets, cash and securities as well as exclusions surrounding fine art, vehicles and weather related damage.

Additional Limits with Airbnb Host Insurance & Host Guarantee Coverage:

  • Rigid requirements can make filing claims a challenge
  • Response time to claims is sometimes lengthy
  • There is no coverage for loss of use so if the property is damaged and you need to wait for a claim to be settled before making repairs, you will lose rental income
  • Coverage is only valid when home is booked with renters

Reducing your risks
Minimizing your risks is important.  You don’t want one bad guest to stand between you and your piece of mind.  Making sure you are prepared for anything that can go wrong is always good idea.  Below are a few things to consider:

  • Make sure you have taken all necessary precautions to ensure the safety of your guests.  Take care of any necessary repairs as soon you become aware of an issue.
  • Make safety a priority by placing items such as fire extinguishers and first aid kits in easily accessible areas.  Be sure all smoke and carbon monoxide detectors and security systems are working well.
  • Provide a list of house rules and how to instructions for all appliances, technology and security systems.
  • Secure, store or remove any valuable or sentimental items from the property.
  • Consider either a locking mail box or having your mail delivered to a PO Box.

It is also a great idea to have an open discussion with your insurance agent to review your coverage as a whole and allow them to identify any gaps in coverage.

If you are currently renting out your home or considering doing so in the future, make us part of your team.  Use our knowledge and call us with any questions you may have about the risks at 914-723-7100.  Educating our clients is of the utmost importance to the entire team at Advocate Brokerage so we would be happy to review your insurance and discuss any vulnerability you need to consider.

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