What Insurance is Necessary When Hosting an Airbnb™?

Many individuals are earning extra cash for their homes, condos, rooms, and rental units by hosting guests via Airbnb™. It can be a lucrative enterprise, but it’s impossible for individuals to now exactly what type of people they’ll be hosting. There may be damage to property or guests may sustain an injury. Short-term rental insurance is essential for anyone hosting Airbnb™ guests.

Host protection insurance is a type of liability insurance provided by Airbnb™ that covers a host’s liability to a guest or third party should they sustain an injury related to an Airbnb™ rental. It can provide up to $1 million in liability coverage. The insurance covers a guest’s bodily injuries and damage to their property or others. It also covers damage to common areas such as neighboring property or lobbies.

The insurance doesn’t cover intentional injury or damage, loss of income, and damage to the host’s belongings or damage to property. While the insurance is great for guests, it doesn’t provide any coverage or protection for the host.

Airbnb™ offers a separate policy for hosts with up to $1 million for property damages. It covers the host’s property, belongings, and a guest’s assistance animal. It doesn’t cover the theft of cash, savings bonds, stock certificates and similar securities. It also doesn’t cover defamation, slander or criminal acts by guests.

It just makes good financial sense for individuals providing a rental to purchase their own short-term rental insurance since there are gaps in the host protection insurance offered by Airbnb™. Short-term rental insurance covers an individual’s property and liability needs while the property is rented. An individual’s homeowner’s policy will typically exclude rental activities.

Short-term rental insurance provides essential protection to the host should a guest sue them for injuries, damage or loss. Defamation and slander are also potential problems for individuals that offer short-term rentals. However, individuals should be careful not to rent their property too often. Their insurance company could decide that what they’re doing constitutes a commercial activity, which will exclude the host from coverage.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487