Your Airbnb Will Leave You Unprotected
We get it. Renting your home out to earn some extra dollars is tempting. But! Your homeowners policy will not likely cover home sharing. Before you become an Airbnb — or join a similar company — contact us to see if you are covered. Most likely you are not.
Most insurance carriers consider renting your home as an Airbnb to be a business. This will not be covered by homeowners insurance. And if one of your guests falls down your stairs and is paralyzed? Well, you will be responsible.
Yes, we are telling you this to scare you. Home sharing while uninsured is not. worth. the. risk.
Homeowners insurance, generally, covers the cost of repairing damage to your home caused by fire, wind or certain other natural disasters. It also offers personal liability protection in case someone is injured while on your property.
With home sharing, you need to know what your homeowners policy allows. And, likely, it is zero coverage.
According to the Insurance Information Institute, some insurance companies will allow you to extend your homeowners coverage to a short-term rental if it’s a one-time event and you notify the insurer ahead of time. Other companies may require you to purchase a specific endorsement – which is like an addendum — that is added on to your existing policy to cover a temporary rental.
But! If you’re renting out part of your home on a regular basis to generate income, insurance companies generally view that as a business, which is not covered by a homeowners policy. You would need to purchase business insurance and, possibly, landlord insurance.
Now, a handful of insurance companies are moving toward expanding coverage for homeowners who rent out their homes through Airbnb and similar sites. That’s great! Call us. Investigate that.
Please contact us if you are looking to become an AirbNb. The penalties and risks are severe. Talk to us about what is and isn’t included in your policy and we can help you determine what’s needed to fill in the gaps.
As always, our goal is simply to protect you.