Orlando Harmon
Airbnb offers free supplemental host coverage called AirCover, which provides $1 million in liability insurance and $3 million in host damage protection. However, it only covers your property during the rental period, and standard homeowners insurance may not cover paying guests in your home. Before listing your home on Airbnb, it is important to consult with a licensed insurance agent to ensure you have the proper coverage. Some insurers offer short-term rental coverage endorsements for an additional fee, while others may require a separate, standalone policy. Additionally, guests can purchase travel insurance directly through Airbnb or from a third-party provider, which can provide coverage for trip cancellations, travel delays, and other unforeseen events.
| Characteristics | Values |
|---|---|
| Airbnb's free supplemental host coverage | $1 million in liability insurance and $3 million in host damage protection |
| Airbnb's free supplemental host coverage applicable | During a guest's stay, not between stays |
| Loss of income | Reimbursed for confirmed Airbnb bookings canceled due to guest damage |
| Coverage limitations | Limited to items needed for home-sharing |
| Standard homeowners insurance | No business liability coverage for Airbnb or other short-term rentals |
| Standard homeowners insurance | May not cover paying guests |
| Standalone short-term rental insurance | Tailored for short-term rentals, insuring the home and providing liability protection |
| Airbnb's AirCover | Free for hosts, provides $1 million in liability coverage and $3 million in damage protection |
| Airbnb's AirCover | Does not protect your home between guest stays |
| Host liability insurance | Provides $1 million in coverage for guest injury, damage to their property, or theft of their belongings |
| Host damage protection | Provides $3 million in coverage for damage to the host's property or belongings caused by the guest |
| Host liability insurance | Does not cover intentional damage, injury, or situations covered under Host damage protection |
| Experiences liability insurance | Does not cover intentional damage, injury, or theft of the host's personal property |
| Homeowners insurance | May not cover claims related to the house being used as a short-term rental property |
- Travel insurance: Airbnb offers travel insurance and assistance services for US residents. It covers trip cancellation, travel delays, and COVID-19-related claims.
- Host insurance: Airbnb provides free supplemental host coverage with $1 million in liability insurance and $3 million in host damage protection. However, it only covers the property during the rental period. Hosts in the UK cannot opt out of this insurance.
- Homeowner's insurance for hosts: Regular home-sharing is often considered a business activity, and standard homeowner's insurance may not cover claims related to short-term rentals. It is important to inform your insurance company and review your policy to determine if additional coverage is needed.
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What You'll Learn
Home insurance policies and Airbnb
Renting your home on Airbnb may not be covered by your homeowners insurance if it is considered a business activity. Regular home-sharing is often considered a business activity, and standard homeowners insurance policies do not typically cover business activity on the property. Therefore, you must inform your insurance company before becoming an Airbnb host to determine what is covered by your current homeowners policy and whether you need additional coverage.
Airbnb offers a free insurance plan called AirCover, which provides $1 million in liability insurance and $3 million in host damage protection. However, it only covers your property during the rental period, and Airbnb recommends that hosts carry additional coverage. Airbnb's insurance coverage has several gaps, including loss of income, intentional acts, and mould. It is not intended to replace homeowners insurance but rather to supplement it.
Some insurers offer short-term rental coverage endorsements for an additional fee, ensuring protection in the event of tenant-caused property damage, theft, or accidents. Others may require a separate, standalone policy, depending on the property's location and overall risk. Standalone short-term rental insurance is a specialised form of coverage tailored for short-term rentals, often insuring your home in the same way as a standard homeowners policy while providing additional protections.
It is important to consult with a licensed insurance agent before listing your home on Airbnb to ensure you have the proper coverage.
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Airbnb's free insurance plan
Airbnb offers free insurance to its hosts, known as AirCover. It provides liability insurance and financial protection to hosts for some guest-related damage. It also includes liability insurance for hosts that sell "Experiences" through Airbnb. This coverage is designed to financially protect hosts and others involved in the rental, like co-hosts and cleaners.
AirCover's host damage protection provides up to $3 million in coverage for hosts if a guest damages the inside or outside of their property, including the host's personal belongings, appliances, and vehicles. It also covers lost income if other bookings must be canceled due to unexpected guest damages and extra cleaning required due to damage caused by guests.
AirCover also includes host liability insurance, which offers up to $1 million in coverage. This includes bodily injury liability for guests and other people, like cleaners and co-hosts. It also covers damage or theft of a guest's property and damage caused by a guest to common areas, such as building foyers or nearby properties. However, it is important to note that AirCover is not an insurance policy and should not be considered a replacement for personal insurance.
In addition to AirCover, there are other insurance options available for Airbnb hosts. Some insurers offer short-term rental coverage endorsements for an additional fee, ensuring protection in case of tenant-caused property damage, theft, or accidents. Landlord insurance is another option, similar to homeowners insurance, offering liability protection and covering the costs to replace, repair, or rebuild your property from a covered peril. However, it is more expensive than standard homeowners insurance.
Ultimately, it is recommended that Airbnb hosts obtain both liability insurance and property damage protection in addition to AirCover to protect themselves from potentially costly legal and damage-related expenses.
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Travel insurance and Airbnb
Airbnb offers travel insurance and assistance services to its guests. This insurance is available to guests in the US and Canada (excluding Quebec and Nunavut).
The travel insurance plan is offered by Airbnb Insurance Agency LLC, and the travel insurance coverages are underwritten by Generali US Branch. The coverages and services provided include:
- Reimbursement of up to 100% of the Airbnb reservation cost for trip cancellation due to covered reasons such as illness or flight cancellation.
- Reimbursement of up to $750 per person for travel delays of 24 hours or more due to covered reasons, including meals, accommodation, and parking costs.
- Reimbursement of up to 150% of the Airbnb reservation cost for unused nights in case of trip interruption due to covered reasons.
- Emergency transportation coverage of up to $100,000 per policy for medical evacuation and related expenses.
- 24-hour emergency hotline, concierge services, and roadside assistance.
It is important to note that pre-existing medical conditions are covered only if insurance is purchased within 15 days of booking, and the individual is medically able to travel. Additionally, pandemics are not covered, but COVID-19 may be covered in certain situations.
While Airbnb's travel insurance provides some level of protection, guests may also consider purchasing third-party travel insurance, which typically offers broader and more comprehensive coverage for all aspects of their trip. Third-party insurance may provide higher policy limits for travel medical insurance and emergency medical evacuation. It is recommended to review the details of the coverage and shop around to find the best option based on individual needs.
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Hosts' liability insurance
Airbnb offers free supplemental host coverage called AirCover for Hosts, which includes Host liability insurance. This provides hosts with $1 million in liability insurance in the event that they are found legally responsible for a guest's injury, damage to their property, or theft of their belongings. It also covers people who help the host, such as co-hosts and cleaners.
The Host liability insurance program (HLI) insures hosts in certain countries for their legal liability for bodily injury or property damage to guests or others resulting from an event that happens during a guest's stay. It does not cover damage or loss to the host's own property or accommodation. The HLI program provides insurance through policies issued by different insurance companies in the United States and Japan and is placed by Airbnb UK Services Limited in the United Kingdom. Hosts in the UK cannot opt out of this free liability insurance.
Hosts should be aware that Airbnb's host protection insurance does not cover loss of income, intentional acts, or mould, and it is not intended as a replacement for homeowners' insurance. It is recommended that hosts carry additional coverage in the form of an endorsement or commercial policy. Before becoming an STR host, it is important to inform your insurance company to determine what is covered by your current homeowners' policy and whether you need additional coverage.
In the United States, Airbnb's Host liability insurance is underwritten by third-party insurers, while in the UK, it is underwritten by Zurich Insurance Company Ltd.
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Short-term rental insurance
Standard homeowners insurance generally offers limited business property coverage and no business liability coverage for short-term rentals. Regular home-sharing is considered a business activity, which standard homeowners policies do not cover, thus leaving gaps in your coverage.
Some companies that offer short-term rental insurance include Proper Insurance, Safely, Truvi (previously SUPERHOG), and InsuraGuest. Proper Insurance offers coverage for both commercial and personal use of your vacation rental, with no occupancy restrictions. Safely provides coverage for on-site incidents, property valuables, structural property damage, and personal injury, with up to $1 million in liability coverage. Truvi provides $5 million in guest-related damage protection for every Truvi-verified booking. InsuraGuest is one of the cheapest options, offering coverage for property damage, theft, and accidental medical incidents.
It's important to note that Airbnb also offers free supplemental host coverage called AirCover for Hosts, which provides up to $1 million in liability insurance and $3 million in host damage protection. However, this coverage only applies during a guest's stay and does not replace actual insurance. Therefore, it is recommended to carry additional coverage through your insurance provider.
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Frequently asked questions
Yes, Airbnb offers a free insurance plan called AirCover, which provides up to $1 million in liability insurance and up to $3 million in host damage protection. However, it is important to note that this insurance only covers your property during the rental period and it is recommended that hosts carry additional coverage.
Regular home-sharing is often considered a business activity, which may not be covered by your standard home insurance policy. It is important to consult with your insurance company to determine what is covered by your current policy and if you need additional coverage.
Airbnb's insurance covers hosts in the event of damage to the property, theft, or accidents. It also includes liability protection in case a guest or someone else is injured during their stay and the host is found legally responsible.
Yes, guests can purchase travel insurance through Airbnb, which includes features such as trip cancellation reimbursement, travel delay reimbursement, and a 24-hour emergency hotline. It is also possible to purchase travel insurance from a third-party provider.
