Homeowners all over the world are looking at home-sharing as a great way to make some extra money. The problem is that many people don’t realize that their regular home insurance policy probably doesn’t cover short-term rentals, so if something goes wrong, you are left unprotected.
The good news is that the popular home-sharing site Airbnb has introduced a more comprehensive coverage policy for hosts. While it may not cover everything, it’s definitely better than having no coverage at all!
The New Airbnb Host Protection Insurance
Up until recently, Airbnb only offered protection against damage to possessions or property by guests. This is called their Host Guarantee, and while important, it was simply not enough coverage. The introduction of the Host Protection Insurance program now protects homeowners from third party claims of bodily injury or property damage. With this insurance, you are protected against liability claims up to $1 million USD that occur in a listing, or on an Airbnb property during a stay. What’s even better, is this coverage comes with a $0 price tag.
What Does It Cover?
The Host Protection Insurance program now offers coverage in over 15 countries (including Canada). Here are some more specifics on the coverage:
- $1 million USD in liability coverage in the event of a third party claim of bodily injury or property damage.
- In some cases, coverage may be extended to protect landlords and homeowner associations.
- If a guest damages your condo building, and you find yourself in a claim with your landlord, the Host Protection Insurance program may also be able to help.
It’s important to note that this coverage does not go without limitations and exceptions, so make sure to do some research to ensure that your unique needs are being met.
What Doesn’t It Cover?
While the new Host Protection Insurance offers much more coverage than the Host Guarantee, there are some circumstances where it does not apply. The Host Protection Insurance program does not apply to liability claims that arise from intentional acts such as assault, sexual abuse, loss of earnings, communicable diseases, acts of terrorism, pollution, asbestos, etc.
Our Recommendation? Talk To A Broker
There are too many “ifs” and “maybes” with blanket coverage programs such as the Host Protection Insurance Program. If you’re thinking about using your home as a short-term rental it’s important to talk to your insurance broker about your standard house insurance policy, and what your best coverage options are. Depending on your policy, running an Airbnb or similar operation could actually void all your coverage — and no one wants that!!
If you have questions or are in the market for short term rental coverage, chat with an expert at Capital Insurance Brokers. Our team will ensure that you have all your bases covered, and can customize coverage to your unique needs.