Renting out your home to tourists can be a lucrative proposition, but keep in mind your homeowner’s policy does not usually cover home sharing. Prior to opening up your home to temporary guests, it’s important to look into how you can protect your property against damage as well as for yourself against personal liability claims. For that, you need the right insurance coverage.  


Homeowner’s Insurance and Home Sharing 

Homeowner’s insurance is designed to cover the cost of repairing damage to your home caused by wind, fire or other natural disasters. It also provides personal liability protection in the event someone is injured on your property. 

When it comes to home sharing, though, the rules have more gray areas. Some insurance companies allow you to extend your homeowner’s coverage to a short-term rental if you need coverage for a one-time event and you are able to notify the insurer in advance. Other companies make you buy a specific endorsement which they will add on to your existing policy. This covers temporary rentals. 

Avoiding Airbnb Insurance Issues

Included with every Airbnb listing is the Airbnb Host Guarantee, which offers property damage protection up to $1 million. While it’s a good safety net to have, there are many gaps in this coverage – namely, there are many exceptions that make it tough for the average person to get reimbursement after filing a claim. 

For instance, you have a very short window of time for a claim filing. If a guest overstays and causes damage anywhere on the property after the rental period is over, Host Protection doesn’t not provide coverage. In fact, the Airbnb policy requires people to contact their primary insurance plan before filing a claim with them. This is why you should never rely solely on the built-in insurance that Airbnb offers. It’s not even a true insurance, meaning it’s not a binding contract between two parties. So while it says it in the name, it’s not a guarantee.

You Need a Proper Coverage Plan

That said, you need a proper coverage plan in order to protect your property and yourself. You should get this separately through your insurance company. But commercial liability coverage can get a little confusing if you don’t know what coverage you need. And if you buy commercial liability insurance, how do you juggle both a homeowner’s plan and a commercial insurance plan? This can get expensive, time-consuming and complicated. 

Working with an insurance agent you trust is of paramount importance. 

Contact Bearce Insurance for Help with Insurance Coverage

Here at Bearce Insurance, we work with Airbnb property renters all the time, and we know the liability coverage they need to sufficiently cover them. To learn how we can help you, contact us in Brockton at 508-586-3400.