Airbnb Insurance
If you list your home or secondary property for short-term rentals on sites like Airbnb, you’ll require specialized insurance. Call us today and we’ll get you the coverage you need before your guests arrive.
Do you need Airbnb insurance coverage?
Your home. Their vacation. A whole different insurance risk.
Renting your home or property on Airbnb can be a great way to earn extra income, but it also changes the risk. Having paying guests in your property is different from having friends or family stay over, and a standard home insurance policy may not be designed for short-term rentals.
Airbnb insurance can help protect the building, contents, rental income and liability associated with having guests. If a guest accidentally causes damage, someone gets injured, or a covered loss leaves the property unavailable to rent, the right policy can provide valuable protection.
And while most guests are perfectly wonderful, you’re still handing the keys to a stranger. That’s why having coverage specifically designed for short-term rentals is a smart move.
You’re running a small business, even if it’s happening in your spare bedroom. Make sure your insurance knows it.
What does Airbnb insurance cover?
An Airbnb policy provides the same coverage as a home insurance policy, plus some additional coverages that only apply to rental properties. Depending on whether your Airbnb property is a house or condo, the following may be covered:
The building
If your short-term rental is a house, the building is covered for damage from fire, water, wind and vandalism. For a condo unit this coverage applies to fixtures, floors, cabinets, anything that’s not covered under the condo corp’s policy.
Personal liability
Liability coverage protects you as a landlord if one of your guests or a service provider is injured on your property or decides to sue you. Covers court awards, settlements and legal fees.
Your belongings
Any belongings you keep inside the house or condo, including furniture, appliances, linens and cutlery is covered for damage by water, wind, fire, theft and vandalism.
Medical expenses
Covers minor medical costs if someone hurts themselves on your property, whether you’re liable or not. It helps avoid hassles associated with lengthy liability claims.
Detached structures
This only applies to a house, if you have a fence, sheds, a gazebo, pool house or detached garage, they are covered for the same perils as the main building.
Minor property damage
If you are responsible for minor damage to someone’s property, this coverage pays for the damage without going to court.
Living expenses
If the Airbnb property is your primary residence and you occasionally list it for short-term rentals, you would have coverage for temporary living expenses if damage to the property forces you to live elsewhere.
Fair rental income
If the property suffers an insured loss like a fire or flooding, this coverage reimburses you if you can’t generate rental income for a time whiles repairs are being done.
Other options to consider
Sewer backup
It happens more often than you think, but sewer backup isn’t covered under homeowners insurance unless you specifically add it.
Overland water
If a river overflows and your basement floods, it’s only covered if you have overland water protection. This can be difficult to get in some areas.
Ground water
Groundwater coverage protects your home if water seeps in through cracks in your foundation. Not all companies offer it, but it’s worth considering if available.
Service line
For exterior water and sewer lines that connect your house to the main system. The city or municipality will often not cover the damage i.e. broken pipes due to tree roots.
Earthquake
This coverage is more expensive in areas known for seismic activity. Deductibles can be high, but it might make sense for you.
Theft, vandalism
Unlike long-term rentals, specialty insurers will sometimes have endorsement for theft and vandalism caused by your guests.
Frequently asked questions about Airbnb insurance
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Where a standard home insurance policy covers your liability and property against losses, including your guest’s property and belongings (to an extent), operating your home as an Airbnb will greatly impact your coverage. Without specialized coverage, you won’t have any coverage if a loss occurs due to an Airbnb stay-not even through your home insurance. You will need specialized Airbnb protection to cover rental-related losses. To note as well, failing to disclose rental activities to your insurer may result in your insurance being void.
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The cost of insuring a property that you rent short-term on Airbnb or Vrbo is usually quite a bit more than you would pay for home, condo or cottage insurance. Airbnb insurance can cost up to twice as much as regular home or condo insurance, and sometimes two to three times as much as you would pay for cottage insurance.
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Airbnb insurance is a type of landlord insurance, and the risks covered are generally the same. The difference is that Airbnb insurance accounts for multiple renters coming in and out of the property constantly, without the usual credit and reference checks required for monthly renters. It’s also more likely that the property will be unoccupied at times, which increases the risk of fire and water damage. For these reasons, Airbnb insurance is more costly than standard landlord insurance.
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Whether the property you rent out as air Airbnb is your house, a part of your house, or a secondary property, the unit’s physical infrastructure is generally covered against common perils, such as wind, theft and vandalism, fire, and so forth. Check with your policy to familiarize yourself with everything that’s covered under your coverage.
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Whenever you rent a property, there is a higher risk of theft, vandalism and other claims. Those risks increase even more when you rent short-term on Airbnb, Vrbo or other rental apps without reference checks on the tenants.
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If you don’t let your broker know that you are listing the property on Airbnb or Vrbo, and you insure it as a regular home, condo or cottage, there’s a good chance that any claim you make will be denied, and that your policy will be cancelled for misrepresentation. Incidentally, you should also let your bank or mortgage broker know.
Save on property insurance with bundle discounts
Combine your home and auto coverage to save 10-20% on your premium.