Does Your Insurance Still Provide Coverage if You Airbnb Your Home?

In recent years, many homeowners have enjoyed lucrative opportunities by renting their homes out to tourists and guests. Using online platforms like Airbnb and Vrbo, these arrangements can allow homeowners to generate revenue using houses, condos and apartments while maintaining flexibility and avoiding the long-term commitments of leases. However, maintaining suitable insurance while using homes for these purposes can be complicated.

Does My Home Insurance Cover Airbnbs?

In most cases, you should not rely on your standard home insurance policy to provide adequate coverage when renting out your residence. Standard coverage typically requires you to be the primary tenant of an insured home and may also have specific requirements regarding how often you reside on the premises. When renting your home through Airbnb or other platforms, losses and damages caused by tenants or other incidents may be excluded, meaning your claims would be denied and you’d face significant out-of-pocket costs.

How Can I Get the Right Coverage?

Many insurance carriers have started to offer what is known as short-term rental insurance. These policies provide specialized coverage for homeowners who rent out to tenants for abbreviated periods (e.g., less than 30 days at a time). While exact coverage details may vary, these policies, also known as home-sharing insurance, may include the following protections:

• Property coverage—This part of your policy can help pay for repair or rebuild costs if your home or its contents are damaged by a tenant.
• Guest liability coverage—This coverage can help pay for third-party losses involving your rental, such as if a guest is injured on the premises or if they cause damage to a neighboring property.
• Theft and burglary coverage—This can help pay for losses should a guest steal your personal belongings while staying in your home.
• Loss-of-use coverage—If a covered incident, such as a fire, makes your rental temporarily uninhabitable, your insurance may reimburse you for rental income you would have otherwise earned.

Get the Right Coverage

Contact Florida Insurance Group in Orlando, FL, today to learn more about coverage options when renting your home out to guests.

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.