Home-sharing has changed the way people travel. Short term rentals.
No one welcomes short term renters like Phoenix Arizona.
This city is exploding with activity for snowbirds and Airbnb users alike.
With over 200 golf courses a vast array of professional sports. Some of the best hiking and trail riding in the US. Getting the right insurance coverage for these short term rentals is crucial.
For homeowners considering renting their property via Airbnb, it’s crucial that you know whether or not your homeowners’ insurance provides coverage for this exposure. Below, you’ll find out how a typical homeowners policy handles home sharing, as well as some short-term rental insurance options that can help ensure that you are properly covered.
Does a standard homeowner’s insurance cover Airbnb properties?
The simple answer is no. If the situation was contributed due to any home-sharing activity it would most likely be declined. You would also be responsible to declare this activity to your agent who would then inform you of the additional coverage requirement. Non-disclosure is also a reason for declining the claim.
The risks of home-sharing
Opening your home to strangers comes with some risks if you do not have the right Airbnb Insurance coverage. Vandalism, theft, and accidental property damage are serious concerns of which any host should be aware of. Should a guest incur bodily injury while staying on your property, you could be exposed to risk if you don’t carry the correct insurance.
Landlords may be liable for the actions of tenants renting out their apartments. If a guest is injured, the landlord — as the owner of the property — could be held liable. This is one reason that many leasing agreements explicitly prohibit home-sharing.
What is home-sharing insurance?
A standard home insurance policy provides liability coverage and property damage, typically extending to the property’s guests and their belongings. This coverage may be nullified if you operate a business on your property. Regular home-sharing is a business activity.
Does Airbnb offer insurance?
Some home-sharing companies offer a form of coverage for hosts. For instance, Airbnb’s Host Protection Insurance provides up to $1 million USD for liability. The coverage extends to Airbnb hosts — as well as landlords — that face third-party claims against them resulting from an Airbnb stay. Airbnb also offers a Host Guarantee. This product is not technically insurance, but it does help to cover the costs of damage caused by guests.
How to get Airbnb insurance
Far to many end up shocked to find out that their home insurance will not cover most of these incidents of damage that occur during a short term rental. Luckily there are several insurers that actually like these types of risk and offer equivalent coverage as what you are used to with your home policy.
The sharing economy has forced insurance companies to change how they provide coverage. Along with the limited liability insurance policy offered by most home-sharing companies, other insurance carriers offer options, including:
- Progressive Home-share
Take a minute and have us compare our coverage to yours and make sure you won’t end up short-changed in the case of a claim while renting to others. Our Airbnb Insurance rates and coverages for this class of business are among the best in the industry don’t forget to check us out.