Home and Content Insurance for Airbnb: Is It Necessary?


Airbnb’s Host Guarantee is not an insurance policy, and not all property damage caused by guests is within its terms. Hosts who want more protection may want to consider purchasing personal insurance that will cover property damage not protected by Airbnb’s Host Guarantee.

From check-in to checkout, you may be protected by Host Protection Insurance and Airbnb’s Host Guarantee. Host Protection Insurance and Airbnb’s Host Guarantee don’t apply to hosts who offer accommodations through Airbnb Travel, LLC, hosts in mainland China, hosts in Japan, or hosts of experiences. Airbnb’s Host Guarantee is not related to Host Protection Insurance or Airbnb UK Services Limited.

Host Protection Insurance is a liability insurance program. It may provide up to $1,000,000 USD in liability coverage for a host’s legal responsibility to a guest or third party that gets hurt or has their property damaged due to an incident related to an Airbnb stay. 

Airbnb’s Host Guarantee is a property damage protection program. It provides up to $1,000,000 USD in property damage protection if a host’s place or belongings are damaged by a guest or their invitee during an Airbnb stay. 

Your personal insurance policy, including any homeowners, condo, or renters insurance policy, may offer limited coverage while you’re hosting an Airbnb guest—or none at all. Talk to your insurer or review your policy to learn more.

Things to keep in mind

Host Protection Insurance is primary liability insurance coverage, meaning it generally applies first regardless of other insurance policies you may have.

Airbnb’s Host Guarantee is not an insurance policy, and not all property damage caused by guests is within its terms. Hosts who want more protection may want to consider purchasing personal insurance that will cover property damage not protected by Airbnb’s Host Guarantee.

Different insurers may have different rules about short-term rentals. Make sure you understand your policy before you start hosting. You may want to consider additional coverage.

Airbnb Insurance for Renters

If you’re a renter, tread carefully. Many leases prohibit listing your place on Airbnb, VRBO, and other similar short-term rental services. Some leases even have clauses that expressly forbid any kind of “business activity” in your rental property, and short-term rentals arguably fall within that category. If you decide to go ahead anyway, you do so at your own peril. You may face fines or eviction if you break your lease terms, so we highly advise against this.

However, suppose you’ve reviewed your lease and landlord policy, and you’re confident that hosting on Airbnb is above board. In that case, the good news is that you don’t have to worry about your renters insurance policy covering third-party claims or personal liability if someone gets hurt in your home. Airbnb actually has its own form of insurance called host protection insurance (more on that below). Airbnb hosts are automatically covered by this policy—you don’t need to do anything to register or sign up for it.

Airbnb Insurance for Homeowners

Property owners generally have fewer hoops to jump through to be Airbnb hosts. Still, your city may have specific regulations or restrictions dictating how you manage your short-term vacation rental. But since this is an insurance blog, let’s keep the focus on insurance coverage.

Like renters, homeowners who become Airbnb hosts are covered by Airbnb’s own host protection insurance. And, like renters, you don’t need to do a thing to be covered. It happens automatically once you list your home.

Most standard homeowners insurance policies don’t cover Airbnb or similar home-sharing services, which is why Airbnb offers its own host protection insurance program. Whichever company you choose, make sure your policy covers liability protection and you don’t skimp on supplemental insurance products. There are insurance options for Airbnb hosts that further protect hosts from damages that would not be covered under normal landlord insurance or business insurance and will protect your rental income.

Do I need home insurance for my Airbnb?

You may have home insurance but does it cover home-sharing services like Airbnb, Vacation rental by owner (VRBO), or HomeAway? By creating an income property, you’ve changed the terms of the contract with your home insurance provider. Speak to them about your plans, they may make a note of it on file, or they could tell you it voids your contract. A contract that has been voided means you have no coverage if you need it, even if it’s unrelated to Airbnb.

airbnb managment

Before you rent, it’s essential to gather home insurance quotes from a few providers making sure they offer this protection. Airbnb covers everyone automatically, but there are limits to their coverage. If you need access to more money than Airbnb can provide, it’s nice to know you can turn to your provider for the excess.

Why do I need extra home insurance if Airbnb provides protection?

Airbnb provides two types of protection. All hosts receive automatic coverage after creating the listing.

Host Protection Insurance provides liability coverage to hosts from your guests. It covers up to $1 million in the event of a third-party (your guests, your condo building, your neighbours) claim for personal injury or their property damage. This insurance acts as primary coverage. You would need to use your home insurance policy if you needed any additional coverage.

Host Guarantee protection offers up to $1 million of property damage protection. Host Guarantee protects hosts against damages, to their home or possessions, by a guest. While Airbnb contents insurance covers some items in your home, It does not include jewellery, rare art, or collectibles. It’s best to store valuable items elsewhere while your house is rented to avoid the risk.

$1 million seems like a lot of money but if someone falls off the second story balcony due to an unsecured railing and sues, is it enough to cover the medical bills? The Host protection insurance does not include the loss of earnings. If that person can’t return to work, you are personally responsible.

Airbnb states on their website that the Host Guarantee does not replace homeowners insurance. They advise you to speak to your insurance broker, understand the terms, and know what your coverage includes and doesn’t.  

Sources- https://www.housing.vic.gov.au/

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top