Your AirBnB can help generate extra income on one of your properties. If your property is damaged or stolen, you could lose a lot of money. Even worse, if someone is hurt on your property, you could face a liability suit.
AirBnb does offer a million-dollar coverage program, but it doesn’t cover everything. Even AirBnb recommends getting additional liability coverage in addition to their Host Protection Insurance.
Getting proper short-term rental insurance can protect you and your property against short-term renting risks.
What Does Host Protection Not Cover?
Host Protection will protect property damage to units, rooms, and possessions covered under the property. However, there are several risks that AirBnb’s protection does not offer such as:
- Personal injury
- Property damage from unregistered guests
- Damage to common areas of the property not listed online
- Damage caused by pets
- Regular damage from property use
- Loss of income and security
- Criminal activity risks
Even more valuable items such as art, furniture, and jewelry may not be covered. Ordinary renters or homeowners insurance may not cover everything your AirBnb may endure.
It’s important to understand what insurance you need to fully cover your short-term rental property. Look at different coverage options you have when selecting your insurance.
Homeowners Insurance
Homeowners insurance covers damages to your home in case of fire, wind, or another natural disaster. You should already have homeowner’s insurance if you own your AirBnb property.
This coverage may not handle personal liability claims. Be sure to check with your insurance provider to see what’s covered under your current policy.
Liability Insurance
Under your regular homeowner’s insurance, your provider may not consider short-term renters may not be tenants.
This is because the individuals are not regularly using the property. Check with your insurance provider to see if you’ll require additional liability coverage for short-term renters.
Home and Business Insurance
If your AirBnb generates regular income, your insurance provider will view that as a business activity. This is not covered by a normal homeowners policy, and may need additional business coverage.
Renters Insurance
If you’re subletting a property you’re already renting, be sure to check with your landlord. Ensure that under your rental agreement you can sublet on a short-term rental site.
You may also need additional renters insurance to cover any subletters. Check with your insurance provider to see if your existing policy already extends to subletters.
Our Top Picks for AirBnb Insurance
We’ve compiled a list of 4 insurance providers that offer great coverage on short-term vacation rentals.
1. Best For Vacation Rentals – Slice (a branch of Progressive)
If your AirBnb mostly sees activity during peak holiday times, check out Slice Insurance.
Slice has specifically created home sharing policies that allow you to choose what days you want coverage for. They describe this policy’s coverage “as simple as turning a faucet on and off.”
Best of all, Slice AirBnb insurance is as low as $7 a night.
2. Best for Business Rentals – Proper Insurance
Proper’s vacation rental coverage understands that if you use your AirBnb property for regular income, you could lose income n unforeseen events.
Like most business insurance policies, your insurance covers loss of income during unforeseen events. They describe their insurance as an “all in one” policy that’ll cover all your homeowner, renter, and business needs.
3. Best for Customizable Coverage – Lemonade
Lemonade’s policy is the only company that specifically caters to AirBnb hosts.
Their coverage has customizable features that can extend your property’s coverage depending on your needs. All their policies simply written with no jargon, making it easy for anyone to navigate.
4. Best For Commercial Liability – CBIZ
If your property includes additional amenities such as a pool, lake, or other equipment, remember to look for coverage with commercial liability.
Commercial liability covers both your property and guests. CBIZ was one of the first short-term rental providers, and are known for their customer service.
How Else Do I Protect My AirBnb?
AirBnb recommends several things to ensure both your property and guests are safe such as:
- Interacting with your guests via AirBnb’s website, and receiving all their contact information.
- Reviewing profiles of all guests attending.
- Clarifying rules and expectations of your guests.
- Writing out a “house manual” with rules and instructions to the property.
- Setting requirements such as verifying ID’s and damage deposits.
- Selecting the right insurance for your property.
Let us know about your experience renting with AirBnb, and how you protect your property from risks!