Airbnb Hosting: Are you covered by your current policy?
Airbnb has proven to be a great source of income for many families across the world. But, with hosting, comes risk. Self-education and awareness should be top priority when identifying the things you may face when becoming an Airbnb host.
Hosting may require you to have a commercial insurance policy for situations where your homeowner’s insurance will not apply. In some cases, your insurance company will not accept your property and you will become ineligible for homeowner’s coverage. For more information on sharing services, or to review your homeowners or renters policy, contact us at 888-728-0817 today.
Airbnb provides a “Host Protection” to all of its host members free of charge. However, there are exclusions that need to be considered. Some of the most important to point out are:
- Host protection will only come into play AFTER you have reported the incident to your insurance carrier.
- Host Protection ALSO takes into consideration any security deposit you received when deciding if they are going to cover any costs.
- The cost of damages will only be covered for property damaged during the time frame of the visit.
In addition to carefully reading the host protection coverage, and adjusting your policy accordingly, you should ALSO be aware of your city & state’s rules and regulations on home-sharing. Airbnb does not keep track of any local regulations, and leaves it to the discretion of the host to decide if they are eligible. If any laws are broken in the process of placing your home on Airbnb, you can face pricey fines!
Many hosts have found themselves in situations where they end up responsible for a hefty bill. In 2014, a woman in L.A got stuck with over $10,000 to pay- see the story: http://www.businessinsider.com/airbnb-guest-caused-10000-of-damage-2014-10
If you are a host, and want to review ALL terms and conditions of Airbnb’s Host Protection, please visit: https://www.airbnb.com/terms/host_guarantee