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The Truth About Airbnb and Property Liability Insurance

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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 they will 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 liability insurance in place, you may be faced with some costly consequences if someone is hurt or suffers damages while staying in your property.

What Does Insurance Cover?

In most instances, a homeowner’s insurance policy won’t cover all types of property damage or body 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 owners of the home, covers you while you’re staying at an Airbnb, and covers 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. This means that if 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 you select an Airbnb insurance company, make sure you pick one that offers you protection from property damage claims and are covered for liability claims.

Purchasing Airbnb Property Insurance

Airbnb also offers a Host Guarantee, which is a free type of property damage coverage that is available to you as a property owner. This type of coverage protects your property and some of the 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. There are several requirements you have to meet to submit a claim, and you’ll likely have a difficult time 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. When you rent out your home, no matter how frequently, 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.

Seek Legal Advice

If you’re involved in a premises liability case, you should hire an attorney who is 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.

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