Does Homeowners Insurance Cover Airbnb Properties?

Standard homeowner's insurance policies may not cover damage to a home or portion of a home caused by an Airbnb stay.

A standard homeowners or condo insurance coverage covers property and liability damage. Some may not cover your property for commercial or business purposes. However, it may cover natural disasters, such as severe storm damage to the home, that have nothing to do with the Airbnb stay.

Secondary or vacation home plans cover the special risks associated with infrequently occupied properties. However, for Airbnb, VRBO, and HomeAway homes, you'll need short-term rental coverage in addition to your standard policy to be completely protected against damages that may occur during a guest's stay.

Offers Airbnb Insurance?

The Airbnb Host Guarantee and Host Protection Insurance protect hosts against property damage and bodily harm. However, there are a lot of coverage exclusions to be aware of, and you might consider purchasing a more comprehensive policy.

Host Guarantee

Airbnb's Host Guarantee is included at no additional cost with every listing. With Host Guarantee, you are covered if a guest causes damage to your property or steals your personal belongings during their stay. Airbnb will reimburse you if a guest steals your iPad or sparks a kitchen fire that damages your appliances.

However, a few things to consider when determining whether Host Guarantee provides sufficient property coverage (hint: it's not).

• Your reimbursement is limited to the actual cash value (ACV) of your damaged or stolen property or personal belongings, i.e., you will only be compensated for the depreciated worth.

• The Host Guarantee only covers damage caused by guests, not "acts of nature" such as a severe storm or theft perpetrated by non-guests.

• You must submit your reimbursement request within 14 days after the guest's departure or before your next guest arrives (whichever happens first)

• There is no protection for precious objects such as jewelry, art, collectibles, or money.

Insurance for Protection of a Host

Host Protection Insurance is also included in every Airbnb property listing. It protects you in the case of a bodily injury or property damage claim by a third party during an Airbnb stay. According to Airbnb, Host Protection Insurance is "primary" insurance, which means that if a covered liability claim happens, Airbnb will handle it. You do not need to utilize your insurance. With Host Protection Insurance, you are protected for up to $1 million in the following scenarios:

• A guest slips and falls in your home, sustain injuries, and sues you.
• A visitor accidentally injures a third party in a common space of an apartment or condominium complex.
• A guest is harmed in a common space of an apartment or condominium building, and you and the landlord are sued (your guilt would be covered by HPI, while the landlord's building policy would pay his or her legal bills).

Remember that the Host Protection Insurance will not cover you in certain situations. For instance, you may not be covered if a guest maliciously injures someone in your facility and then sues you. Airbnb will also not cover any property flaw that injures your guests or damages their property, including bed bugs, mold, and any pest-related damage or loss.

Don't Make Assumptions.

Experts decide many insurance claims. Don't assume whether you know if something is covered or not. Although some instances involving are covered by insurance, there are various factors why the insurance company might try to get out of paying you. It is essential to realize that the insurance provider could try to convince you that the cost of fixing the damages is less than the deductible. Don't let the insurance provider take a free ride in rejecting your legitimate claim. Get an experienced home insurance attorney to help. Let the attorney evaluate through experts whether a claim is covered or not.