Does your homeowners insurance cover Airbnb? Thinking of renting out your home on Airbnb? It can be a great way to earn extra income, but it also comes with new risks.
Many homeowners assume their standard insurance policy will protect them if something goes wrong during a guest’s stay; but that’s not always the case.
Renting out your home, even just for a weekend, may fall outside what your insurance covers. In some cases, you might be left without protection if there’s damage, theft, or an injury.
However, before you list your property, it’s important to understand what your homeowners insurance does and doesn’t cover when it comes to Airbnb.
What Does a Standard Homeowners Insurance Policy Cover?
A normal homeowners insurance policy is designed to protect your personal residence. It usually covers damage to your home from events like fire, storms, or theft.
It also includes personal liability coverage, which can help if someone gets injured on your property. However, this coverage is meant for private, not commercial, use.
Once you start using your home as a short-term rental, like listing it on Airbnb, your insurance company may consider it a business activity.
And most standard homeowners policies exclude business-related claims. That means if a guest causes a fire or gets hurt while staying in your home, your insurer could deny your claim.
Short-Term Rentals and Coverage Gaps
When you rent out your home to strangers, even for a night, you’re taking on new risks. Here are a few examples where your current policy might not protect you:
- A guest slips on your stairs and breaks an ankle
- A pet damages your furniture or floors
- A guest throws a party and causes serious damage to your property
- Someone steals or vandalizes your belongings
Because these situations happen during a rental, your insurer might say they don’t fall under personal use and refuse to pay for the damages. This is what’s known as a coverage gap.
Does Airbnb Offer Insurance Protection?
Airbnb does offer some protection through its AirCover for Hosts program. This includes:
- Host liability insurance (up to $1 million) for injuries or property damage
- Host damage protection for damage caused by guests
While this may sound reassuring, it’s not the same as homeowners insurance. AirCover has limitations, and coverage may be denied in certain situations.
For example, it might not cover loss of income, certain types of personal property, or liability from unsafe conditions in your home.
That’s why it’s important not to rely solely on Airbnb’s protection and to understand exactly what it does, and doesn’t cover.
What Are Your Options?
If you plan to rent out your home regularly on Airbnb, talk to your insurance provider. You may need to:
- Add a short-term rental endorsement to your current homeowners policy
- Buy a landlord insurance policy, which offers protection for rented properties
- Look for specialty insurance designed specifically for Airbnb and vacation rentals
These options can give you broader coverage, including protection for lost income, guest-related damage, and business liability.
Final Thoughts
Renting your home on Airbnb can be rewarding, but don’t overlook the risks. Your standard homeowners insurance may not cover you once you start hosting guests.
To avoid costly surprises, review your policy, ask your insurer the right questions, and consider upgrading your coverage. Peace of mind is worth it; especially when you’re letting strangers into your home.
