Insurance recommendations & advice

1

I’ve been a successful Airbnb host since November of last year. I’ve since learned that my homeowner’s insurance will cover me as long as I dont have over 30 booked days in a policy year. Well, I’m going to have well over that many days booked this year. I’m in California, and I’m currently insured with Liberty Mutual, who have good rates. I got a quote from another company that will cover Airbnb hosts, but it’s over twice as much. I’m looking for any and all advice. Thanks in advance!!

PS
I have a 3 bedroom, detached home that is my primary residence when it’s not rented out. When it is rented out, I don’t stay there. It’s been booked about 80% of the time so far this year.

2

Yes commercial insurance is always going to be more than standard home insurance, @Paulcalif so you being quoted twice as much, is not so surprising.

You could try asking an insurance broker to get you some quotes.

3

When I did some research in November/December of last year, I found the least expensive option if you’re only booking a few days every month was to have a homeowner’s policy that is “compatible” with short term rentals and use Slice for the short-term rental insurance. Slice is pay-by-the-day insurance so you only pay for the exact days that you rent.

That said, I didn’t get it because I did the math and it would only be cost-effective if my occupancy rate was less than 30%. I got a dedicated short-term policy and yes, it was about double the cost of my previous homeowner’s policy. This is for a whole-home rental that I don’t live in, BTW. You didn’t say what type your rental is, but I think there are much better options for owner-occupied properties.

4

Thanks Helsi,
I’ll look for a broker.

5

Thanks Brian,
I updated my post.

6

I use proper insurance. 2x homeowners but they cover things like bed bug removal and loss of income while in repair. It was worth the piece of mind.

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7

Today my guest is coming in late, so I had a little time to look into insurance options a little deeper. I asked Airbnb for their advice and was just sent links to the Host Guarantee and the Host Protection Insurance. After reading through both of those coverage documents, it appears that between the two free Airbnb coverages, we are pretty well covered through Airbnb for both damages to our properties and liability from injuries on our properties. I’ve sent an email to my insurance agent to find out if I’ll be covered for casualties caused by non-Airbnb events. If I am, I think I’m covered. During my last conversation with my insurance company, I was told I had coverage as long as I had less than 30 days rented during a policy year. I’ll go way over that, so now I’m waiting to find out what happens to my policy once I’m over that 30 days of rentals. No coverage at all? Limited coverage? I hope they answer soon.
So, I’m asking the group, am I missing something, are there issues relying on the Airbnb coverages? Thanks again, Paul

8

I have Lloyd’s here in Ontario thru April insurers. It’s expensive, but well suited to Airbnb. But

9

You should do some research (use Google) on host’s experiences with Airbnb’s “free coverages”. In my opinion, you are taking a huge risk if they are your only coverages.

Your policy may be completely void if you exceed the limit. Make sure you get the answer in writing.

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10

Not by a long shot. I’ve read too many horror stories here and elsewhere about people finding out what their homeowners insurance and AirBnB’s “guarantee” do not cover.