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The Truth About Airbnb and Property Liability Insurance
If you’re an Airbnb host or thinking about becoming one, it’s important that you understand the business so you can protect yourself when people rent your home for short time periods. Some Airbnb tenants will treat your home like it’s their own and conduct themselves however they please.
This is partially true since you’re renting your home to these tenants, but it is not entirely accurate. If you don’t have vacation rental insurance, you may face costly consequences if someone is hurt or suffers damages while staying on your property.
What Does Insurance Cover?
In most instances, a homeowner’s insurance policy won’t cover all types of property damage or bodily injury you may endure if you’re a tenant in an Airbnb property. If you try to file a claim with your homeowner’s insurance, you will be denied, and your policy may be cancelled.
Since your short-term rental of an Airbnb is a business transaction, you should have business insurance. Business insurance covers the homeowners, you while you’re staying at an Airbnb and the guests on your Airbnb property.
Here are some important things you need to know about property liability when it comes to your Airbnb.
Don’t Forget About Commercial Liability Protection
Protection is one of the most forgotten aspects of owning a business is purchasing liability claims protection. Even if you only rent your Airbnb a few times a year, remember that you’re running a business just like you would if you were a hotel owner. Suppose your guest gets hurt while on your property; you could face liability charges even if you weren’t involved in the victim’s injury.
If you have to pay a settlement for a liability claim, these expenses can add up to tens of thousands of dollars. When selecting an Airbnb insurance company, make sure you pick one that offers protection from property damage claims and is covered for liability claims.
Purchasing Airbnb Property Insurance
Airbnb also offers a Host Guarantee, a free type of property damage coverage available to you as a property owner. This coverage protects your property and some items in your home but isn’t the same as an insurance plan. Instead, Airbnb property insurance is a guarantee by your rental platform.
The Host Guarantee does have several exclusions, and you could be left with a huge bill if someone is hurt on your property. You have to meet several requirements to submit a claim, and you’ll likely have difficulty getting a reimbursement.
Don’t Depend on Homeowner’s Insurance Alone
As a property owner, don’t make the mistake of relying on your homeowner’s insurance coverage and forego getting an Airbnb insurance provider. Homeowner plans were created to cover you in the event of liability and property damage claims based on specific situations.
Rentals are not included in these situations. No matter how frequently you rent out your home, you increase your risk for liability and property damage claims. This isn’t included in your homeowner’s insurance plan.
If your insurance provider finds out that you’re listing your property for rent on Airbnb, your coverage will likely be terminated and you won’t receive any reimbursement from any filed claims.
If you have multiple rental properties, you can save time and money with a multi-property portfolio landlord insurance policy.
Seek Legal Advice
If you’re involved in a premises liability case, you should hire an attorney skilled in this area. It’s important to know your rights as a property owner, especially if you have the right type of insurance policies in place. The lawyer will explain your rights as an AirBnB owner and help you settle the matter fairly and as soon as possible.
