Home Insurance for Airbnb and Short-term Rentals: Do You Need Extra Coverage?

Renting out your home or a spare room on platforms such as Airbnb can be a great way to earn extra income—but have you checked your insurance policy lately? If you’re a homeowner using your property as a short-term rental, standard home insurance may not provide all the protection you need.

Why Standard Home Insurance May Not Be Enough

Most traditional homeowners insurance policies are for personal use, not business activities like short-term renting. When you rent out your property even occasionally, you introduce additional risks such as property damage, liability issues and loss of income. Some insurance carriers may even deny claims related to short-term rentals if you haven’t disclosed this use.

What Coverage Airbnb Hosts Need

Platforms such as Airbnb usually offer host protection insurance, which provides up to a certain amount of liability coverage. While this may be helpful, it’s not comprehensive. It may not cover everything, such as damage caused by a guest that falls outside their terms of service or loss of rental income due to cancellations or property repairs.

For more comprehensive protection, homeowners who do short-term rentals should consider the following:

• Short-term rental insurance—This is a specialized policy or endorsement that may cover property damage, guest injuries and even income loss.

• Landlord or business insurance—A landlord or commercial policy might be more appropriate if you’re renting frequently or managing multiple properties.

Learn More

Don’t wait for an incident to find out you’re underinsured. Contact Casual Insurance Group in West Palm Beach, Florida, to review your current policy and explore the right options for your short-term rental needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.