How Do Airbnbs Affect Home Insurance?
As summer approaches, many Americans are preparing to offer their home up to vacationers and other short-term renters through Airbnb or similar services. If that includes you, you might also have questions about how Airbnbs affect home insurance!
Weâ€™re going to answer some of the most frequently asked questions about home insurance and home-sharing services, so if youâ€™ve got questions on the topic, you wonâ€™t want to miss this post!
Does My Home Insurance Cover Home-Sharing Services?
When you start using your home as an income property and you havenâ€™t disclosed this to your insurance company, thereâ€™s a good chance your claims will be denied if they result from using your home as an income property.
To make sure you have the coverage you need, be sure to disclose to your insurance company about your intentions with your property. Your insurance company might add a note to your file about using it as an Airbnb, add an endorsement to your policy if available or something similar, or in some cases, it might void your contract altogether.
The only way to find out for sure is to speak to your insurance provider and review your policy.
What About Insurance Offered Through Airbnb?
Airbnb offers Host Protection Insurance to hosts which include up to $1 million in liability coverage per claim for third-party claims, including bodily and property, and other services have similar insurance plans.
This coverage can be very useful for hosts, but itâ€™s essential to remember that when you have this coverage in place, it could void your regular home insurance â€” and this coverage has its limits.
Thatâ€™s why itâ€™s so critical to discuss your plans with your home with your insurance agency.
What Isnâ€™t Covered By Host Protection Insurance?
Although Host Protection Insurance does offer some essential protection, there are also some important things it does NOT cover, including:
- Loss of earnings
- Intentional damage
- Property damage resulting from pollution, mold, etc.
Whatâ€™s the Best Way to Protect Myself?
To make sure you have the right insurance in place when using your property for short-term rentals, be sure to speak to your insurance provider about your options. They might suggest landlord insurance, umbrella insurance, or other forms of protection useful for your specific situation.
If youâ€™d like to learn more about how Airbnbs affect home insurance, give Lupton and Luce Insurance a call today so we can help!