Is it smart to have your own insurance?

I have been looking into either commercial liability insurance, or landlord’s insurance. I have heard horror stories of Airbnb’s insurance not covering enough. Do you think it is wise to have your own insurance as backup? And if so, what kind do you use?

You should have dedicated short-term rental insurance as your primary protection, not your backup. Don’t count on AirBnB’s “Host Protection”, “Host Guarantee”, or the “Security Deposit”


Yes you definitely need STR insurance. Your broker will be able to get quotes for you.


Yes, get your own insurance and also an umbrella insurance. Don’t rely on Airbnb to have you covered.

Thank you so much for your response! Would you mind elaborating on what umbrella insurance means? I’m quite new at this. Much appreciation!

An umbrella insurance covers you up to one million dollars and it’s not that expensive. You pay the premium yearly. If you get sued your homeowner’s insurance may not fully cover you so your umbrella insurance would kick in.

You may also wish to consider forming an LLC if you have a full house rental. So if you get sued by a guest, they’re suing the LLC and not you personally.

It is smart to have your own insurance and most Airbnb hosts should look into it. You should also check your state’s laws about what cannot be taken from you if you are sued. This is referred to as “judgment proof.”

Because I have a low net worth and almost everything I have is protected under TX state law, I don’t worry about being sued. Also, I have a small airbnb attached to my house in a temperate climate, no stairs, balcony, kitchen, etc. So my Airbnb risks are lower than another host’s might be.

I suspect that few Airbnb hosts would be able to follow my model.

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I did create an LLC to further protect myself. Sounds like umbrella insurance is the way to go. Thanks for your help!

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I got an umbrella insurance over 20 years way before I even started hosting. I got it after a friend’s husband accidently hit a lady with his car. She was not at the crosswalk and dressed in black, it was a dark rainy night. When he made the turn he didn’t see her and hit her. She sued and his car insurance wasn’t enough so they went after his personal belongings. After hearing about this incident I got umbrella insurance.

Not with your idiotic avoid-Fed-regulations-so-we-can-fail-spectacularly power system. I thought that Alaskan ignoramuses had elected the worst Gov in the US, but Abbot takes the cake, with assistance from the Rs in the TX lege. Where is Molly Ivins now that we really need her?

My part of TX is not on that grid. There are times when TX acting like we aren’t part of TX works in our favor.

“Only the good die young.”

Shantel you should carry your own insurance that allows for short term rental activity. Hope this is helpful.

As this topic is a few years old, I think it’s time to archive it,