Thinking about renting your home via Airbnb?
The insurance side of Air BnB and other vacation rentals can be complicated so let’s give you a solid foundation to work from.
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Does Homeowners Insurance cover Air BnB?
No, it doesn’t. Insurance companies differentiate between personal insurance and business insurance. When you bring a business into your home, regular homeowners insurance doesn’t cover that “exposure” like you’d expect it to.
Does a tenant insurance policy cover Air BnB?
Same as the last one, no. The reason is that you’ll be having multiple guests, not just one annual tenant. A tenant insurance policy is built for a single annual tenant. You need a vacation rental insurance policy.
What are the three most important coverage options?
The three most important coverage options are:
- Dwelling Coverage – to rebuild your home itself if a covered event happens and damages your property
- Personal Property Coverage – to replace your belongings
- Liability Coverage – to protect you and help pay medical bills if something bad happens to your renters or their guests because of your property,
How can I find the right insurance for Air BnBs?
Ask your insurance agent for a VACATION RENTAL insurance policy. Some insurers will offer special types of insurance specifically for Air BnB. A good insurance agent will ask you quite a few questions about how you plan to rent your home out. They should tailor the policy based on details like:
- Will you rent tohe entire property or just part of your own home?
- Will you use online sites like Air BnB or will you use another avenue?
- How often do you expect the property to have guests?
- What is the longest you’ll have the property sitting empty without any guests?
Buying property for Air BnB? Check out our Home Buyers Guide for instructions on winning at the home buying process!
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