Airbnb, Vrbo, Homeaway, and others have revolutionized travel. Living like the locals has never been easier. Earning income by renting out your properties has also become feasible for so many. But letting strangers stay in your home comes with its fair share of risks. What type of insurance do you need to protect your Airbnb as the owner? Find out now.
Will Homeowners’ Insurance Cover My Airbnb?
Most likely not. Homeowners’ insurance is designed to protect your home and your belongings, not your business or your guests. When you start renting out your home, it becomes a business with a whole different set of liabilities.
What Type of Insurance Do Vacation Home Owners Need?
While traditional homeowners’ insurance may offer some coverage, it often falls short in addressing the unique risks associated with short-term rentals. Your best option is short-term rental insurance, designed explicitly for Airbnb and similar platforms. This specialized insurance typically covers property damage caused by guests, liability protection in case of injuries or damages, and even loss of rental income due to covered interruptions.
But not all insurers are created equal. Going with the cheapest policy might not be the best idea, if the insurer is known for being hard to communicate with or taking far too long to process claims. Your best bet is to talk to an independent insurance agent, who can connect you with numerous reputable quotes.
Is there insurance for loss of rental income?
If your Airbnb or vacation rental is your main stream of income, you might need to consider business interruption insurance as well. It can help protect hosts in situations where their property becomes temporarily uninhabitable due to covered damages, such as fire, flood, or other perils. If a covered event renders the property unrentable, leading to a loss of rental income, this insurance can provide financial assistance to the host. The coverage typically includes reimbursement for the income that would have been earned during the period when the property is undergoing repairs or restoration.
Learn About Your Current Homeowners’ Insurance
Some insurers offer endorsements or add-ons that extend coverage for short-term rentals. However, others may require hosts to purchase additional or specialized insurance. It’s always a good idea to talk to whomever provides your home insurance to see what options might be available to you.
What happens if a guest damages my property?
When an Airbnb, Vrbo, or other homesharing guest damages a host’s property, the resolution process typically involves a series of steps to address the issue. The host needs to document the damage thoroughly, including photographs and written descriptions, as evidence for potential insurance claims. They need to inform the guest immediately of the damage and discuss potential resolutions, such as reimbursement or repairs. If the damage exceeds the security deposit or is not resolved amicably, hosts may need to involve the Airbnb resolution center, where both parties can present their case, and a resolution specialist helps mediate the dispute. For hosts with appropriate short-term rental insurance, filing a claim with their insurance provider may be necessary to cover repair or replacement costs.
Find Specialized Insurance for Your Airbnb With The Kind Insurance
It’s undoubtedly exciting to invite travelers into your home, create unique experiences for them, and make money doing it. Knowing you have the right protection for your assets makes that experience far less stressful. How can you find the right policy for your property? Talk to an agent at The Kind Insurance. We’ll take into consideration your unique home and circumstances to find the perfect policy for you and your guests.