How important is Airbnb Hosting Insurance?
Thousands of Airbnb rentals go off without a hitch every day, but guests can sometimes cause a flood, walk off with the family jewels or sue you for personal injury—eventualities that Airbnb recognizes and addresses to some extent with their host protection insurance program, which offers liability coverage for up to $1M, and the Airbnb hosting guarantee program, which covers property damage for up to $1M.
Airbnb Hosting Insurance: The Fine Print
Read the fine print, though, and you’ll discover there are a number of conditions, limitations and exclusions for each of these programs. For example, if the event that resulted in the host liability or property damage occurred even a few hours before or after the defined period of stay, it’s not likely covered by Airbnb. If you, as a host, didn’t comply with every aspect of the rental contract, you won’t be covered. Don’t make a claim within 14 days? Not covered. Want to make a claim about a shared area of your home? Probably not covered. Even if you’re covered for a property damage claim, the payout may be only for current value, not replacement cost.
What does Airbnb Say?
Whether you’re renting a room or an entire condo, house or cottage through Airbnb, don’t assume your own insurance policy will make up the shortfall. Instead, have your insurance provider review your insurance and Airbnb’s programs to ensure you’ve got the proper coverage for your circumstances. It’s something even Airbnb recommends. “We encourage everyone to check with their insurance providers,” advised Aaron Zifkin, Airbnb’s country manager for Canada, in an interview with Insurance Business Canada.
You may be surprised to learn that your general home insurance will cover you for the first time you rent through Airbnb, but any subsequent rentals won’t be covered, since your insurer will assume you’re running a business and need commercial insurance.