What does Airbnb insurance actually cover? Has anyone had to make a liability claim for their insurance to cover? I am concerned about liability …What do others do? Get a supplemental policy?
I would not depend on Airbnb for anything other than bookings. I have a STR policy by CBIZ and a seperate umbrella policy.
You don’t want to rely on Air’s insurance. It’s a marketing gimmick, not a policy to rely on.
My HO insurance covers STR in a separate rider, so long as it’s a hosted stay (ie. I’m home). I also added a $1M umbrella policy, as required by my city’s regulations.
CBIZ and Proper are the two STR insurance companies I’ve heard the most about. Be sure to read the fine print and ask some hypothetical questions. Some of them only cover the portion of the structure used by guests, and seemed to walk away if there’s catastrophic damage to the entire home (e.g. they’ll pay out if a toaster oven torches the kitchen cabinet in your unit, but if the fire takes down the entire house, they’ll only pay for the 30% that housed your guest space)
Yes, make sure you have your own short term rental insurance and that it includes both property damage and liability. Airbnb’s Host Guarantee is notorious for either not paying or paying only 1/10th of the actual cost of damage. I haven’t read any stories about claims filed against the Host Protection (for liability), but I don’t imagine it’s any better.
If you are not a shared-space hose, you need dedicated STR insurance. If you are a shared-space host, then call your current homeowners insurance to see if they have a rider that covers STR, but be prepared to move fast to get new insurance because some insurers will cancel or void your policy for STR use, meaning you may have no insurance after you make that call.
If you depend on the income, your STR policy can also reimburse you for lost income when you can’t rent for a long time due to repairs, etc.
CBIZ and Proper are popular in the USA. Slice seems like a really good option if you have a compatible homeowner’s policy AND your occupancy rate is low.
Thank you and Allison for your info.
It is one house with me living downstairs with no access for STR and the upstairs is for STR entirely with their own separate entrance/ deck ect.
If it’s one house and the rental portion doesn’t have a separate address, separate property tax, etc. then it probably falls under a shared-home for insurance purposes. Having a homeowners policy with an STR rider will be the least expensive and the most convenient for you. Check with your current insurer and be prepared to switch if they don’t offer what you need. Other hosts here may even be able to tell you if your insurer offers it, but insurance in the US can vary by state, so it’s best to call the insurer.
If you look at the Airbnb Help Centre @Kerri and search Airbnb Guarantee and Liability Insurance it will show you what it covers and how it works.
I did ask my insurance broker to find a policy that allowed short term rentals. My existing policy did not, and I did not want to take any chances.
I had to take a few pictures of the place and answer some questions. They cancelled my existing policy and I paid the difference. Maybe 25% more per year, with a few higher deductibles and lower payouts - but the peace of mind is definitely worth it for me. I rent out my downstairs suite and live upstairs…
@Helsi, do you really have any confidence that this would cover anyone? The way Air runs their business, making hosts the de facto travel insurance, having the last say in all disputes… I think anyone would be ill advised to rely on anything from them.
I know five hosts that have successfully claimed under the guarantee and one who had a liability claim Airbnb processed when a guest injured themselves.
So certainly it can work, if you follow the process for the claim.
They deal with thousands and thousands of claims every year, and of course there will be situations where it goes wrong and those are the ones we tend to hear about. Which I am sure is a frustrating and heartbreaking.
Personally I would never rely on it. That’s why I have always had my own specialist insurance.