Understanding How Being an Airbnb Host Affects Your Insurance

Understanding How Being an Airbnb Host Affects Your Insurance

What Airbnb hosts need to know about insurance.

Do you use Airbnb to rent out your properties? If so, it’s important to understand that this carries a certain amount of risk. For instance, Airbnb hosts need to be worried about guests injuring themselves or causing injuries or damages to others while staying in their home. While you might feel confident that your homeowners insurance will protect you from these risks, there are some insurance concerns that Airbnb hosts need to be aware of. Here’s how being a host will affect your coverage.

You Might Not Have Enough Coverage

Homeowners insurance policies tend to offer very specific coverages, such as using your home for business purposes, are not covered by a general policy. If you are renting out your home on Airbnb, then there is a chance that your insurer will consider this a business operation. This might mean that your insurer will refuse to cover any of the liability claims that arise from hosting guests in your home. To ensure that your existing policy offers the coverage that you need, make sure you get in contact with your insurer today.

Your Policy Could Be Cancelled

As an Airbnb host, there is a chance that your insurer might decide to cancel your policy. This would be a result of your insurance company deciding that you are now too risky to insure. If this occurs, your insurer might require you to switch over to a commercial insurance policy designed to offer coverage for the increased risk that you face as a business entity. Unfortunately, this would also mean having to pay higher insurance premiums as well. If you are only making a few hundred dollars a month as an Airbnb host, then this profit most likely won’t be enough to offset these higher insurance costs.

Airbnb Will Offer Insurance Coverage

Airbnb does offer its own insurance program for hosts that offers up to $1 million in liability coverage. While this coverage will certainly offer you some peace of mind, it does have some limits. For instance, the program does not offer coverage for intentional acts such as assault or sexual abuse. Additionally, communicable diseases, acts of terrorism, pollution, asbestos, etc. are some of the other risks not covered. While these issues may seem unlikely to occur, they aren’t unheard of. If a guest faces issues not covered under Airbnb’s program, you will likely be left to handle the major lawsuit on your own.

These are some of the insurance considerations you should keep in mind as an Airbnb host.  Do you have additional questions regarding your homeowners insurance?  Then turn to the experts at East End Insurance Agency.  Our dedicated team is always ready to address your coverage concerns.  Contact us to get started today.

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